In this article have considered aspects related to the cryptocurrency mining. After reading you will understand why they are increasing in the price or, conversely, are cheapen, and why in different days produced different number of coins.

Every electronic currency, particularly the bitcoin, has a complexity indicator. A number of coins mined per time unit directly depends from it. Than it is higher, the less BTC will be found.

Complexity Graph of the Mining

Let’s try to understand the complexity graph of the mining. You can see it like a ladder and changing by sharp “jerks”, after which remains unchanged for some time. You correctly note – this parameter is changed 1 time per 2-weeks period. Now is the most interesting – why this indicator changes in this way?

It’s pretty simple – the developers while designing the Bitcoin system laid specific number of BTC, what will be produced in 2 weeks. If suddenly will be mined more than laid, the mining difficulty will increase, so that the electronic money producing flowed not so soon. If during this time were received less coins than expected, the parameter decreases and bitcoins are mined sooner.

Now we can think about following: if the difficulty parameter of this e-currency is steadily increasing, it means that the number of hashrates, used for its production, is increasing over time. If this number grows, it is logical to conclude that becoming a large number of those who mined coins, and therefore again it can be concluded that more people get information about the cryptocurrency.

If interest to the bitcoin increases, it is logical that over time will increase its cost. Such simple conclusions are justified also for other crypto-money. When increasing the difficulty of its mining, it means that the currency is in demand, and therefore its price will be higher.

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There is a large and bulky formula, thanks to which you will be able to count how many cryptocurrencies will get your hashrates at the specific complexity of the mining, although we are not going to explain it. Everything is explained much easier – the speed of the process is inversely proportional to the difficulty: when it increased, for example on 10%, you will receive on 10% less money with same hashrates.

How it will affect the bitcoin cost?

Perhaps, it is already clear that if the difficulty of getting coins will change, their price will also change. However, there is a discrepancy; the direct dependence between these data values is missing. Of course, it is logical that the harder to obtain cryptocurrency, so it should be worth more, but the Bitcoin price depends not only on the complexity, but also from the demand, and other motives.

We would like to supplement the above: perhaps not everyone knows – however, the Bitcoin reduction by a half approximately every 4 years was laid in its algorithm. While every 4 years the miner reward will drastically decrease exactly twice – everyone will obtain 2 times less of the BTC with the same amount of capacities.

This process, of course, also affects the cryptocurrency cost, for example, in previous times, when such a halving occurred, the BTC price has increased from $12 up to $1000 in a few months. By the way, next this procedure is approximately scheduled on July 2016. It is not clear what will happen this time, although, of course, everyone is waiting for a rise of the electronic currency rate.