As i can see btc is hitting all-time high , but how this actually works i mean sometimes its going up and sometimes down,
is this depend on mining or how many people buys or someone is behind this ?
This will be a horrid explanation. <---
You can use this to build a vague idea and then go to someone who actually knows what they're talking about(;
Mining is like "creating" more bitcoins at exchange of solving calculations.(Misleading, please read the rest.)
Mining is necessary to make the network continue, so users can transfer btc to each other through the network. Each time a transaction is done, it is encrypted and sent across the network where it confirmed multiple times before landing in the destination wallet, on top of that, every time a new transaction happens anywhere in the world, every other wallet has a copy, as it's added to the global ledger.
BtC is paid out by what my friends call the "BtC-God" when a new block is solved, which is exponentially increasing in difficulty each time. These BtC are split up among the miners that solved the block, the pay is split-up based on how much Hash-Juice they were pushing to help the network solve the block.
1 Giga/Tera Hashes per Timeframe
The price of BtC is going up and down because of supply demand, as people can buy and sell it as they did stocks originally.
This has caused a misunderstanding of what BtC is, as they think it's made or controlled by a human/company, and they think there is unlimited, and they think BtC is like stocks.
All of which are a nope.
These same people think that some guy on top is controlling this all, and that transactions can be reversed etc. There is no "bitcoin HQ" or "office" to call lol.
Hell there isn't even a human running it. It's
sort of like a self-sustainable, self-admined, program hosted on a cloud thats maintained by its user-base. It essentially "bribes" us into keeping it afloat by paying us out and handling our transactions.
Had a guy I worked with on a construction site who was a silver/gold hoarder.
He got into the youtube space for crypto, and started buying up all the etherium and btc. Hyped alt coins etc.
He had an issue where he sent 150+$ to the wrong address once and couldn't understand how and I quote: "..a company that makes so much god-d*mn money didn't have a support team or a head-office that he could walk into and talk to someone. How hard is it to make an office in each state."
*big facepalm*
These are the guys who think bitcoin is a paraymid scheme lmfao.
People have large warehouses filled with just machines/rigs/graphics cards, all solving hashes to mine crypto, whether bitcoin or alt-coins.
Recently the halvening occurred which kind of means the BtC-God pays out half as much BtC when someone solves a block.
Meaning the same power consumption for half of the supply. This combined with deep-pocket corps jumping in to flip btc like stocks has caused the BtC to rise to 20k+.
Many people predict 100k+ and that it will be used on a governmental level.
