Hello! Bitcoin is the first cryptocurrency in the world that also has a limited supply. Its creator Satoshi Nakamoto set a limit of 21 million bitcoins to fight inflation. But what happens when all the bitcoins are mined? And how many of them are left? We tell you.
Why can't you mine more than 21 million bitcoins?
Satoshi Nakamoto designed the bitcoin code so that only a certain number of coins can be mined per year until the limit is reached. This allows you to control the supply and price of bitcoin. At the beginning of autumn 2023, there were more than 19.4 million BTC in circulation, that is, only 1.6 million bitcoins remained to be mined.
Why do I need a Bitcoin halving?
Halving is a mechanism that reduces the number of bitcoins in circulation by half every four years. This is done in order not to overload the market and maintain interest in bitcoin. It is estimated that the last bitcoin will be mined by the end of 2078.
Total supply of Bitcoin
Not all of the mined bitcoins enter the market. Some of them are located in inaccessible wallets that will most likely never be used. According to the New York Times, there are about 20% of such bitcoins. This further reduces the supply of bitcoin.
Final figure
Even if there were no "unavailable bitcoins", the exact figure of 21 million is impossible in theory. This is because the bitcoin code rounds decimals to the nearest integer. Therefore, the total issue of bitcoin will be approximately 20,999,999.
What happens when all the bitcoins are mined?
What will happen to the miners
Miners need an incentive to continue mining bitcoins. One option is to change the bitcoin code and issue more than 21 million coins. If this does not happen, miners can either increase transaction fees or create cartels to control the supply and demand of bitcoins.
What will retail investors and hodlers do
If Bitcoin remains popular, its limited supply and investment value will make it attractive to invest in. Hodlers and retail investors will accumulate bitcoins in their wallets, which will further reduce the supply and support the high price of bitcoin.
How will institutional investors react
Institutional investors such as funds, banks, and corporations may also be interested in bitcoin as an alternative asset. They can invest their funds in bitcoin to diversify their portfolios and protect themselves from inflation. It can also boost the demand and price of bitcoin.
- Why can't you mine more than 21 million bitcoins?
- Why do I need a Bitcoin halving?
- Total supply of Bitcoin
- Final figure
- What happens when all the bitcoins are mined?
- What will happen to the miners
- What will retail investors and hodlers do
- How will institutional investors react
Why can't you mine more than 21 million bitcoins?
Satoshi Nakamoto designed the bitcoin code so that only a certain number of coins can be mined per year until the limit is reached. This allows you to control the supply and price of bitcoin. At the beginning of autumn 2023, there were more than 19.4 million BTC in circulation, that is, only 1.6 million bitcoins remained to be mined.
Why do I need a Bitcoin halving?
Halving is a mechanism that reduces the number of bitcoins in circulation by half every four years. This is done in order not to overload the market and maintain interest in bitcoin. It is estimated that the last bitcoin will be mined by the end of 2078.
Total supply of Bitcoin
Not all of the mined bitcoins enter the market. Some of them are located in inaccessible wallets that will most likely never be used. According to the New York Times, there are about 20% of such bitcoins. This further reduces the supply of bitcoin.
Final figure
Even if there were no "unavailable bitcoins", the exact figure of 21 million is impossible in theory. This is because the bitcoin code rounds decimals to the nearest integer. Therefore, the total issue of bitcoin will be approximately 20,999,999.
What happens when all the bitcoins are mined?
What will happen to the miners
Miners need an incentive to continue mining bitcoins. One option is to change the bitcoin code and issue more than 21 million coins. If this does not happen, miners can either increase transaction fees or create cartels to control the supply and demand of bitcoins.
What will retail investors and hodlers do
If Bitcoin remains popular, its limited supply and investment value will make it attractive to invest in. Hodlers and retail investors will accumulate bitcoins in their wallets, which will further reduce the supply and support the high price of bitcoin.
How will institutional investors react
Institutional investors such as funds, banks, and corporations may also be interested in bitcoin as an alternative asset. They can invest their funds in bitcoin to diversify their portfolios and protect themselves from inflation. It can also boost the demand and price of bitcoin.
