According to data from the Clark Moody Bitcoin Dashboard, about 90% of 21 Million Bitcoins have been Mined. A supply shock may become unavoidable as the monetary network increases in popularity and use around the world, raising demand for BTC.
90% Of 21 Million Bitcoins Have Been Mined
Bitcoin, the only digital currency that removes the problem of double-spending in a distributed and trustless manner, enforces a supply cap of 21 million coins through its consensus mechanism, controlled by tens of thousands of nodes worldwide.
One of the most enticing elements of Bitcoin is its stable and unchanging monetary policy, especially when compared to the reality of fiat and “crypto” currencies, whose supply and monetary policy might alter based on the decisions of a few people.
Peer-to-peer (P2P) electronic money, in contrast to soft fiat money, is safe. Nobody has the authority to increase or decrease the supply of bitcoin. The Bitcoin network follows the notion of “rules without rulers,” and the rules are unbreakable.
Even though “we are still early” has become a meme, it is most likely correct. Few people are aware of Bitcoin and its potential to empower ordinary people. While people living in privileged areas with high levels of freedom and individual rights may disparage Bitcoin, the peer-to-peer cash system can empower them as well.
For the most part, Bitcoin has diverse connotations for different people. It could operate as a store of value for someone residing in the United States or the United Kingdom, for example, because inflation isn’t as high but purchasing power is still reduced over time. For those living in locations like Palestine or Cuba, where dictatorship and brutality are endemic, Bitcoin may be their final option for financial independence.
Bitcoin’s diverse use cases around the world highlight its adaptability and the numerous ways it can help different individuals in various ways. Even still, the majority of individuals are unaware of how Bitcoin can help them.
Regardless of people’s understanding of the monetary network, the predictable issue of new Bitcoin continues to be triggered every 10 minutes on average when another block is mined.
Now that more than 90% of the Bitcoin supply has been issued, scarcity is much more obvious. Although already-issued coins can and often are traded on the market, the truth is that the majority of the circulating bitcoin supply is held by companies with little or no history of selling.
In December 2020, Glassnode, a data analytics firm, published research attempting to assess and offer light on the liquidity of the Bitcoin supply. It examined “Bitcoin entities” and classified them into three liquidity categories: extremely liquid, liquid, and illiquid.
“Our analysis shows that illiquid entities presently own 14.5 million BTC (78 percent of the circulating Bitcoin supply),” according to the report.
Despite the fact that issued Bitcoin can be traded on the market, the majority of it is owned by persons who have no plans to sell it. The “HODL” notion is popular in the Bitcoin community, and many people are determined to hold on to their BTC until it reaches full monetization and becomes a unit of account, allowing them to spend rather than sell. The “HODL” notion is popular in the Bitcoin community, and many people are determined to hold on to their BTC until it reaches full monetization and becomes a unit of account, allowing them to spend rather than sell.
However, much of the stock that has yet to be issued is likewise not highly liquid. Some of the world’s largest public Bitcoin miners have joined the HODL movement this year. For example, Hut 8, a Canadian miner, has claimed ownership of all 256 BTC mined in November. It had 5,242 Bitcoin in reserve as of November 30, 2021.
People, institutions, and governments will suffer a whole new level of FOMO once they grasp how uncommon Bitcoin is (fear of missing out). A supply shock may be unavoidable due to a lack of supply to meet a considerable increase in demand from large actors such as hedge funds and central banks, resulting in soaring prices and the eventual collapse of the US dollar.
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