Bitcoin is a mathematical genius. The cryptocurrency has been designed in a way that its circulation stays fixed and supply decreases over time. As of April 1, 2022, which is nearly 13 years after it was found, 19 million Bitcoins have already been mined. However, the remaining 2 million will take more than a century to be found. Why? This is because of the halving that happens every 4 years, which reduces the mining rewards by half and decreases the new supply.
Bitcoin supply and mining
The 19th million Bitcoin was mined on April 1, 2022, at a block height of 730,034. It is a big achievement for the network and also shows how little supply is left. With this, more than 90% of the entire supply is now in existence. So, as the adoption of Bitcoin rises without adequate supply, the price will just skyrocket. The effect of this decreasing supply will be seen during the next halving in 2024.
Right now, the block rewards are 6.25 Bitcoins which means as a miner finds the right block number, they get this reward. This happens every 10 minutes. After 2024’s having this number will reduce to 3.125 BTC. And in 2028 and 2032, it will become 1.5625 and 0.78125, respectively. So, in almost a decade, the mining reward will be even less than 1 Bitcoin. So, for miners to continue their operations, it is clear that the price of BTC will have to rise substantially. There is also the difficulty metric which makes it easier or difficult for miners to find the reward. It is also unpredictable and affects the profits of miners.
The supply is lower than it seems
Even though there are 19 million Bitcoins in existence, not all of them are in circulation. Satoshis’s coins haven’t moved in a long time, a lot of early investors have lost their keys to their coins, and many whales are not even budging to sell their holdings. So, the real supply is a small fraction of 19 million. All traders and investors right now are fighting over this small supply.
What happens after the last Bitcoin is mined?
The last BTC will be mined in 2140. After it happens, the incentive for miners will be the transactions fees of Bitcoin. And since it will be a long way into the future, we can expect that the adoption will be high to make it sustainable.
Are you excited to hear that 19 million Bitcoins have been mined? And do you think that the supply crunch will push BTC’s price higher? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: India is seeking consultation from IMF and world bank for crypto policies
