Now that we know 90% of Bitcoin has been mined, the question now is what will happen after Bitcoin supply is over?
Satoshi Nakamoto, the creator of the world’s first Cryptocurrency created the famous Cryptocurrency token Bitcoin. He made numerous innovations and made Bitcoin such that it can potentially truly replace traditional currencies one day. In such measures related to this he capped the maximum number of Bitcoins to be not over than 21 million. This measure was to limit the number of tokens in the market to make it scarce. If not made finite, the token would be in infinite supply which will create issues with inflation. We’ve seen Hyperinflation in the past with a surplus currency.
In a recent research we found out that almost 90 per cent of all the Bitcoins have been mined as of now. These Bitcoins are in circulation. This feat was achieved by the first Cryptocurrency after a long stretch of 12 years. Out of the 21 million Bitcoin over 18.89 million are mined and have entered the market and are in circulation. The first 50 Bitcoins were mined on January 9, 2009 and since then, the coin has seen a lot of heights.
The mining of Bitcoins is done by solving complex mathematical problems that verifies and validates the block of transactions occurring in the network. After completion of these processes and successful completion of a set number of transactions, the miner gets Bitcoins as a reward.
90% of BTC are mined but is it possible to mine it all?
It is worth noting that the Block reward for mining these crypto tokens are halved every four years. That means when Bitcoin took off initially, the reward was 50 tokens. After 4 years, in 2012 the block reward was halved to 25 tokens. After that the reward was halved to 12.5 tokens in 2016 and to 6.25 in 2020. By 2024, expectations are that miners will earn 1.56 Bitcoins for a mining operation. This halving process will continue until every last of Bitcoin is mined.
According to the calculations by the popular blockchain.com, that provided the information about 90% of Bitcoin getting mined, these 10% Bitcoins will be mined for a prolonged duration. The estimations say that the Bitcoin supply will last till February 2140.
Additionally, the coin gave an estimate of the lost Bitcoins, the tokens which are not actually in the market. This disappearance is due to various reasons such as loss of the private key by the user, Death of the user or many more reasons like that. The estimates give a figure of 3.7 million Bitcoin that were lost by these reasons.
So what will happen if the Bitcoin supply is over?
Experts say that after Bitcoin supply is over the mining industry will still thrive. The miners will rely on the transaction fee related to Bitcoin instead of the block rewards.
This prediction implies that Bitcoin mining won’t stop anytime soon. With the block reward getting smaller every 4 years, there will be a fair number of coins to mine in the future. What will happen after Bitcoin supply is over? We think we have a fairly good idea of it now.
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