What Are The Limits
The maximum amount of Bitcoins that can ever be mined is 21 million. It’s unknown why Satoshi Nakamoto, the mysterious creator of Bitcoin, chose this exact number, but we do understand why the limitation was introduced: to prevent inflation. Unlike central banks, which can issue their currencies in any volume at their discretion, thus causing inflation, the number of Bitcoins is increasing at a stable, predictable and periodically decreasing rate.
Limiting the maximum number of Bitcoins is possible through a procedure called halving. It cuts the block reward in half after every 210,000 blocks generated and happens about every 4 years. At the very beginning, the block reward was 50 Bitcoins. Since then, there have been 3 halvings, and, as already mentioned, the current block reward is 6.25 Bitcoins. The next halving event will occur around May 2024.
Who Owns The Most Bitcoin
Satoshi Nakamoto, the founder of the bitcoin protocol, holds the largest amount of bitcoin. According to Satoshi, he currently owns an estimated number of bitcoins around 1 million which by todays BTC price amounts to about $56 billion, making him the richest person in crypto.
He has neither used most of his coins nor exchanged them into any real-world fiat currency.
A Mere Decade From Now Nearly 97 Percent Of Bitcoins Are Likely To Have Been Mined
A mere decade from now, nearly 97 percent of Bitcoins are likely to have been mined
- About 18.78 million Bitcoins have been mined so far
- The rarer a commodity is, the higher its value
- In 2012 the first halving’ happened
Bitcoin has come a long way since it was created in 2009. What has, however, remained constant is its hard limit, set by its assumed creator, Satoshi Nakamoto, whose real identity remains a mystery. Nakamoto set the upper limit at 21 million in the source code, meaning no more Bitcoins over that number can be mined or brought into circulation. Nakamoto did not give any explanation why the limit was chosen as 21 million, but many see it as a huge advantage for the world’s oldest cryptocurrency. They say the limited supply keeps the cryptocurrency scarce and will hold its price steady for years to come.
How many of them have been mined so far?
About 18.78 million Bitcoins have been mined so far, meaning 83 percent of all the Bitcoin that will ever come into existence have already been brought into circulation. This leaves a little over 2 million Bitcoins to be mined. The market capitalisation of all Bitcoins in circulation today is roughly $866 billion . Bitcoin price in India stood at Rs. 36.02 lakhs as of 6pm IST on August 17.
How does this hard limit benefit Bitcoin?
How has Bitcoin evolved through the years?
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What Happens When All The Bitcoins Are Mined
Right now, the exact time when the last bitcoin will be mined is hard to depict or predict. Currently, when each new bitcoin is mined, miners are rewarded with blocks. Thats how miners earn their income. If all the bitcoins are mined as per the predictions, the miners will no longer be able to mine and earn these rewards.
There will be no scope left for miners to mine because all the bitcoins are already mined. The situation remains the same until 2140. If the new bitcoins are created, then the mining can restart again.
What Is A Bitcoin
A bitcoin is a type of digital, decentralized cryptocurrency launched back in 2009. You can use the currency to buy goods and services. To date, there are hundreds of major retailers, establishments, and services, including airlines, that accept bitcoin payments.
Unlike any countrys legal tender, though, bitcoins are not regulated by a central governing body. That means no government maintains its current value. No one adjusts its rate for inflation or dictates how many bitcoins are issued.
Bitcoins are instead obtained through a process called mining and accounted for using a type of electronic ledger called a blockchain. A blockchain refers to the technology used to transfer bitcoins from one persons or entitys wallet to that of another.
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How Many Bitcoins Are Mined Per Hour / Day / Week / Month / Year
On average the block time is 10 minutes = 6 blocks every hour = 144 blocks every day. The block reward currently is 6.25 BTC.
- About 37.5 BTC are mined per Hour.
- 900 Bitcoins are mined per Day.
- 6300 Bitcoins a mined per Week.
- 25200 Bitcoins are mined every Month and
- 302400 Bitcoins are mined every Year.
Note: This calculation is made based on the block reward and block time. The numbers may be slightly off. Also note that it will change every 4 years due to the halving event which is programmed.
Now coming to the last question. What happens when all the 21 Million Bitcoins are mined?
How Many Bitcoin Miners Are There
As far as we know, popular Bitcoin mining pool Slushpool has approximately 200,000 active Bitcoin miners. These miners form 12% of the networks total hash rate.
Based on these numbers we can estimate that there are more or less 1,000,000 people that are mining Bitcoin, whether individually or in a pool.
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Does Halving Have Any Effect On The Bitcoin Price
The price of Bitcoin has risen steadily and significantly from its launch in 2009, when it traded for mere pennies or dollars, to April 2021 when the price of one bitcoin traded for over $63,000. Because halving the block reward effectively doubles the cost to miners, who are essentially the producers of bitcoins, it should have a positive impact on price because producers will need to adjust their selling price to their costs. Empirical evidence does show that Bitcoin prices tend to rise in anticipation of a halvening, often several months prior to the actual event.
What Will Happen When All 21 Million Bitcoins Have Been Mined
At some point, the limit of 21 million will be reached. The big question is: What happens after that?
1. The miners will no longer receive block rewards.
Bitcoin miners will receive rewards for each valid block they mine. Note that the Block Rewards miners receive change every four years and are reduced by half.
Once all 21 million Bitcoins have been circulated, no more mining will take place. This simply means that miners will no longer receive these rewards. However, they will continue to earn money. And they will do so through the transaction fees they collect from each confirmed transaction. Their job is mainly to ensure the security of the network, as this is the source of their income.
2. Impact on transactions
How many rewards miners receive depends on the transaction fees paid. Miners receive higher rewards for transactions with higher fees. What does this mean for you? Miners might start prioritizing transactions according to the fees they attract.
The transactions with higher fees are executed faster than those with lower fees.
3. The bitcoin price will rise
The halving is already causing turbulence in the market, leading to an increase in the value of the cryptocurrency. The finite principle applied leads to low supply compared to demand, which influences the price.
When the price of the cryptocurrency rises, miners also receive higher transaction fees.
4. Investors could be motivated to show interest in cryptocurrencies.
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What Happens When All Bitcoins Are Mined
Bitcoin miners earn rewards when its over their income will be limited to transaction fees. Skeptics cite that lack of rewards may phase out miners and lead to the collapse of the entire system. On the other hand, enthusiasts view that Bitcoins widespread use for transacting may increase fees per transaction to maintain the miners.
Why There Is A Limited Supply Of Bitcoin
When Satoshi Nakamoto designed bitcoin, they decided to build in a limited supply. By limiting the number of bitcoins, this creates a built-in level of demand and value for the cryptocurrency.
If there were an unlimited supply of bitcoins, it would not have any value.
The limit was partially a response to the currency system of the U.S. dollar, which doesnt have a limited supply. Since the U.S. dollar is controlled by centralized authorities, they can decide to print more money and take other actions that result in inflation or other economic issues.
If there were an unlimited supply of bitcoins, it would be difficult for the cryptocurrency to gain any momentum as a valuable asset. With a limit on supply, this creates demand.
Similarly, if all the bitcoins were mined within just a few years, excitement about the cryptocurrency might quickly die out, and it wouldnt have a chance to be built out as an industry and viable currency.
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A Brief History Of Bitcoin
Following a number of attempts at a digital currency, the most successful being computer engineer Wei Dais B-money in 1998, the enigmatic Satoshi Nakamoto apparently began working on his whitepaper in 2008. In October of the same year, it was published titled Bitcoin: A Peer-to-Peer Electronic Cash System.
The nine-page paper outlined the design and justification for a digital currency with the intention of doing what no other attempt could do before create an anonymous, trustless, decentralized currency. It said:
What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.
Satoshi was no fan of the modern banking system, particularly fractional-reserve banking whereby a bank accepts deposits and makes loans or investments with other peoples money, but is required to hold reserves equal to only a fraction of these deposit liabilities.
In the early days, bitcoins were sent to and from users out of interest and to test the software. The first real use of BTC to actually buy something was made in 2010 when Laszlo Hanyecz famously asked for pizza on the bitcointalk forum in exchange for 10,000 bitcoins. He received a $25 order of pizza in exchange for the BTC, marking the first ever transaction for a tangible asset.
How Many Bitcoins Are Mined On A Daily Basis
Currently, on a day to day basis, the nodes of the Bitcoin network confirm approximately 144 blocks, each of them rewarding miners with 12.5 newly minted coins.
With a few simple calculations, we find that the total amount of new Bitcoin mined each day amounts to 1,800 coins . These rewards, however, as mentioned above, will be cut in half in May 2020, when the next halving happens.
Additionally, there is one more thing to keep in mind. Miners have been increasing the hash rates of their hardware in the last few years, which means that the block intervals are often set at 9.5 minutes instead of 10. This expedited mining time often leads to more than 1800 Bitcoin being created on a daily basis.
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Mining Solo Or Joining A Pool
The second factor is whether you decide to mine solo or join a pool. When selecting a mining pool, it is crucial to consider its reputation and collective hash rate. The hash rate is the amount of power required to mine bitcoins at the moment. At present, mining pools, such as BTCC, F2Pool, Poolin, BTC.com, and Slush, control the majority of the networks hash rate.
Before joining a mining pool, thoroughly check if the bitcoin community trusts it. Some mining pools claim they are legitimate, but turn out to be scams. It is best to opt for well-established pools despite their higher-than-average signup rates. Such pools possess better hashing resources and block rewards for members. They are also more likely to have the infrastructure to fight off a cyber attack.
If you have enough computing power and the cost and availability of electric power is not an issue for you, you can opt to mine for bitcoins solo. Note, though, that it would most likely take you longer to generate a bitcoin than if you pool your resources with others. The only disadvantage of mining with others is that you share profits with the other members of the pool.
When Will All Bitcoins Be Mined
At the current rate the last bitcoin will be mined around the year 2136. Around that point, the reward will halve to a point where the block reward will be less than 1E-8 BTC, which is the lowest denomination of bitcoin so there is some doubt about how miners will be incentivized to keep mining. On top of that, by then there should be a much faster way to mine BTC than at the moment.
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How Bitcoins Hard Cap Could Be Changed
Despite the countervailing incentives outlined above, a supply cap change is still theoretically possible. In order to change the supply cap of Bitcoin, several groups would have to collaborate.
First, developers would have to propose and then write the code to implement this change. There would be community discussion, which would likely be controversial. If these changes were agreed upon by developers, the changes would be integrated into Bitcoin Core.
Next, the community would have to agree to an activation path, in order to ensure that the network transitioned to the new ruleset collectively. Changing the supply cap would necessitate a , which means that all nodes on the network would have to adopt the changes or be forced off the network.
As part of the activation path, both miners and nodes would signal their support for the change, and once a dominant portion of the network signalled support, the change would be activated. Nodes and miners who refused the change would now operate a minority fork, preserving the original Bitcoin network, and the two networks would compete for market share and .
Invest in Bitcoin.
Whats A Bitcoin Block Why Are 6 Bitcoins Created Every 10 Minutes
Bitcoin can be thought of as a digital currency, whereas the blockchain can be thought of as a digital ledger. It is a place where all buy and sell transactions of Bitcoin are recorded and stored. The digital ledger is decentralised, which means that it is not kept in one central server or location. Instead, identical copies of the ledger are stored on computers all across the Bitcoin network.
So who exactly records the buy and sell transactions onto this digital ledger called the blockchain?
This is where people called Bitcoin miners come in. The miners have very powerful computers and compete to solve a mathematical problem which when solved, gives that miner the right to write the next block of buy and sell transactions onto the blockchain .
There are approximately 1,500 transactions on each block and one block is created every 10 minutes or so.
So why do the miners want to win the right to confirm approximately 1,500 transactions and create the next block on the blockchain?
Its definitely not for fun. The reason is that they are rewarded with Bitcoin.
For every block that is created by a miner, that particular miner receives exactly 6.25 Bitcoin as a reward.
At the current price of Bitcoin, one lucky miner is making approximately $270,000 every 10 minutes by being given 6.25 BTC which is created for them.
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Bitcoin In Circulation Today
But when you try to answer the question “How many Bitcoins are there now?”, you need to take into consideration one more factor. “How many Bitcoins are there in total?” and “How many Bitcoins are in circulation?” are really two different questions with different answers. The thing is that since the first block was generated, a considerable amount of Bitcoins has been lost. The only way to control Bitcoins on any Bitcoin address is to know the so-called “private key” to the address. So, if the owner of the Bitcoins has lost the private key or for some other reason is unable to use it, the Bitcoins on that address are effectively lost and cannot be withdrawn from there. Although people now tend to keep their private keys safe, in the days when Bitcoin had little to no monetary value, its owners were much less careful.Some of the reasons Bitcoins can be lost:
- A physical device containing the private key can be lost or broken beyond repair.
- A paper wallet can be lost or destroyed.
- An owner can die without giving anyone the private key.
So, the moral of the story is “always make a backup“.
In addition, many Bitcoin holders, including large ones, prefer not to use their Bitcoins as a means of payment. Instead, they prefer to store them in crypto wallets for an indefinite period of time. That means that even though these Bitcoins aren’t lost, they can’t be considered to be in circulation.
Will The Limit Ever Be Changed
The current limit of 21 million coins in existence is decided back when the bitcoins were initially launched. However, it is not intended to curb the circulation altogether with the passage of time or continue it indefinitely till eternity. Right now, the mining limit is at 21 million and the limit continues till 2140. That is a lot of time and the demand has been increasing exponentially day by day.
There is no clause or statement that even after 2140 the limit of bitcoin will remain to be 21 million. The chances are high, considering the rising demand and interest, that the bitcoins in circulation will be increased after 2140.
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