Bitcoin

With More than 85% Bitcoins Mined, Only 3 Million Bitcoins Are Left to be Mined

Bitcoin, the world’s first decentralized cryptocurrency, was created by Satoshi Nakamoto over a decade ago. Unlike fiat currencies, bitcoin has a finite supply of 21 million. As 18 million bitcoins have been mined successfully, now, only 3 million bitcoins are left to be mined.

After these 3 million bitcoins are mined, no new bitcoins will be ever created and the existing ones will continue to circulate for the rest of the time. Although 18 million bitcoins have been created in roughly 10 years, 3 million remaining bitcoins will take more than a century so don’t worry if you haven’t bought some yet.

Bitcoin is created during the process of mining. Miners all over the world give their best to verify transactions on the bitcoin blockchain in order to get awarded. Almost every 10 minutes, a new block is added to the bitcoin blockchain by miners. Against each block, miners are awarded 12.5 bitcoins.

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As miners deploy computing power and bear the cost of electricity to mine bitcoin, they are compensated for their expenditure with rewards i.e 12.5 bitcoins. However, this reward isn’t fixed and changes every 4 years. After bitcoin halving, that takes place every 4 years, the reward of miners is cut into half. This means that following the next bitcoin halving that will be taking place next year, miners’ reward will shrink to 6.25 bitcoins.

As bitcoin halving takes place every 4 years, one can easily anticipate that bitcoin production rate will decrease with time. This explains why the upcoming 3 million bitcoins will take more time than the previous 18 million bitcoins. In contrast to roughly 10 years taken by 18 million bitcoins, the remaining 3 million will take 120 years i.e 12 times the time taken for the creation of all previous bitcoins.

While there remains plenty of time for people interested in buying bitcoin, the decision of delaying the purchase of bitcoin should be taken after analyzing financial aspects regarding bitcoin. As mentioned before, bitcoin is the world’s truly decentralized cryptocurrency which means that it obeys only the fundamentals of supply and demand.

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Bitcoin price decreases when the supply of bitcoin exceeds its demands. Similarly, when the demand for bitcoin increases its supply, the price of bitcoin increases. So, as anticipated, the supply of bitcoin is likely to reduce as the creation rate of new bitcoins will decrease in the future. Following that, there is a possibility that bitcoin’s price skyrockets, thereby, getting out of affordability bounds for several people.

Bitcoin is considered as a highly volatile asset capable of returning enormous gains. On the other hand, the volatile asset is also capable of dropping down to the ground so think smartly before investing in bitcoin.

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Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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