Bitcoin (BTC) is known for its restricted coin availability, a key feature set by its creator(s) under the pseudonym Satoshi Nakamoto. By capping the supply, becomes more scarce as time passes, leading to heightened demand and value.
Network expands by of new bitcoins roughly every 10 minutes, which is the typical time it takes for a new block to be verified and added to the blockchain. As intended by the system’s architecture, the reward for creating a new block is cut in half approximately every four years, or after 210,000 blocks have been added to the chain.
Is it possible for the total number of Bitcoins to ever reach 21 million?
The maximum supply of bitcoins is, but it’s unlikely that this total will be reached. This is due to the way the Bitcoin network employs mathematical operations that truncate certain decimal values, effectively rounding them down to the nearest whole number.
When the Bitcoin block reward is halved, the new amount is calculated, but due to the limitations of the smallest unit of measurement, the satoshi, it cannot be precisely divided. Since a satoshi is indivisible, the blockchain’s programming uses mathematical operations to truncate the reward amount to the nearest whole number, effectively rounding down. This consistent rounding down of fractional satoshis means that the total supply of bitcoins is expected to be slightly less than the theoretical maximum of 21 million.
The issuance of new bitcoins per block is cut in half roughly every four years, meaning the last bitcoin (or satoshi) is projected to be mined by 2140, possibly sooner. Initially set at 50 bitcoins per block, the current rate stands at 3.125 as of 2024, with the next halving expected around 2028.
Despite the cap of 21 million bitcoins that can be created, the actual number of bitcoins in circulation is likely to be significantly lower. This is because some bitcoin owners may inadvertently forfeit their holdings, either by misplacing the private keys to their digital wallets or by passing away without disclosing their wallet information. According to a Chain lysis study published in June 2020, as much as 20% of the existing bitcoin supply may be irretrievable due to permanent loss.
What occurs once all 21 million Bitcoins have been mined?
Once the total supply of bitcoins reaches its predetermined limit, which may be slightly less than 21 million, the creation of new bitcoins will cease.
When Bitcoin reaches its maximum supply, it is expected to have an impact on Bitcoin miners. The extent of this impact will be influenced by the development of Bitcoin as a digital currency. Transactions will still be grouped into blocks and validated by miners, but their rewards may primarily come from transaction fees rather than newly minted Bitcoin.
In the year 2140, Bitcoin could function primarily as a way to hold value instead of being used for everyday transactions. Despite this shift, miners may still be able to make money by charging substantial fees for processing large or valuable transactions, even if transaction volumes are low and block rewards are no longer available. This can be facilitated by more advanced “layer 2” blockchains such as the Lightning Network collaborating with the Bitcoin blockchain to support daily spending of bitcoins.
What is the total number of Bitcoins that have been extracted and added to circulation?
By December 22, 2024, a total of 19.9 million bitcoins have been generated, with approximately 1.1 million bitcoins yet to be released. The maximum limit for the total bitcoin supply stands at 21 million. (Source: Coin Market Cap, “
The time frame required to extract a single Bitcoin?
The duration required to mine a single bitcoin is determined by the block reward, which is the number of new bitcoins given to miners for creating a new block. In 2024, the block reward stands at 3.125 bitcoins, with a new block being generated roughly every 10 minutes. This results in an average of 0.3125 bitcoins mined per minute, despite the fact that the blockchain does not allocate coins on a minute-by-minute basis. Following the reward halving in 2028, the rate of mining will decrease to about 0.15625 bitcoins per minute.
What occurs with mining fees once Bitcoin’s supply limit is attained?
Bitcoin reaches, miners will probably still collect transaction fees for validating transactions and creating new blocks, as these essential processes will remain necessary to maintain the network’s integrity.
The ultimate conclusion:
It remains uncertain whether Bitcoin will be used as everyday small currency or valued like precious gold by the year 2140. The Bitcoin system is constantly growing and changing, leaving room for potential transformations in the future. Regardless of how Bitcoin changes, the supply of bitcoins will be capped at 21 million coins, which could have a major impact on Bitcoin miners and potentially on investors as well.
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