Bitcoin (BTC) is a decentralized digital currency that was created in 2009 by an anonymous individual or group of individuals known as Satoshi Nakamoto. It uses a peer-to-peer network and cryptographic technology to facilitate online payments and transactions. BTC operates independently of any central bank or administrators, making it a truly global payment system.
Unlike fiat currencies which can be printed at will, BTC has a finite supply of 21 million coins. As of November 2020, 18.5 million have already been mined out of the total 21 million coins available, leaving only 2.5 million to be mined over the next few years. In addition to this, Bitcoin’s algorithm also dictates how difficult it is to mine new coins – the more miners there are, the harder it is for a miner to find an unminted coin. This incentivizes miners to remain active on the network and keeps inflation in check.
In order for users to trade and exchange their bitcoins for other cryptocurrencies or fiat currencies like US dollars or Euros, they must use exchanges such as Coinbase, Binance, Kraken etc.. In order for users to store their bitcoins safely from hackers or other malicious actors, they must use wallets such as Blockchain Wallet or Trezor etc.. All of these services allow Bitcoin holders to securely buy, sell and store their coins online with greater peace of mind.
The total supply of Bitcoin (BTC) is capped at 21 million coins, which are expected to all be mined by the year 2140. This fixed amount means that no more Bitcoins can ever be created, providing an incentive for miners to continue verifying and recording transactions on the blockchain. Each block reward currently stands at 6.25 BTC and is halved every four years until all 21 million coins have been released into circulation.
At the moment, around 18.5 million Bitcoins have already been mined, with miners continuing to claim new coins as a reward for processing transactions securely. As the network grows in size and demand increases for the cryptocurrency, it becomes increasingly difficult for miners to uncover new blocks and receive their rewards due to how competitive the market has become. This has also caused transaction fees to rise as competition increases among miners seeking higher payouts from users’ transaction fees.
As of April 2021, there are approximately 2.5 million BTC left that will enter circulation as they are mined over time. As this number dwindles, it could lead to further growth in demand and make Bitcoin even scarcer than it already is; some analysts predict that its scarcity could drive up its value even further in the future.
Exploring the History and Halvings of Bitcoin’s Supply
Early Stages of Bitcoin Mining: 2009 – 2012
In the early stages of Bitcoin mining, between 2009 and 2012, the total supply of Bitcoin (BTC) was still relatively low compared to how much is available today. In its first year alone, 50 BTC were mined per block, while in 2012 this number decreased to 25 BTC per block.
The early years saw exponential growth in users and miners, which made it easier for miners to find new blocks and earn more rewards. This also helped build up a larger network of trust and confidence in the technology, which made it easier for more people to join the movement.
The first halving took place on November 28th 2012 when the number of BTC mined per block was cut from 25 to 12.5 BTC. This was an important milestone as it marked an increase in scarcity due to the reduced number of coins entering circulation each day. It also meant that miners had to be more competitive and efficient with their resources if they wanted to remain profitable.
Over time, as the number of miners on the network began to shrink, transaction fees increased as competition grew among those who remained active on the network – a trend that has continued until today’s higher fee environment. This has forced miners to use more advanced hardware solutions such as Application Specific Integrated Circuits (ASICs) in order to stay competitive with other miners on the network and receive higher rewards every time they submit a valid proof-of-work solution.
It’s estimated that by around 2140 all 21 million BTC will have been mined into existence – meaning no more new coins will ever enter circulation again unless changes are made to how Bitcoin works at some point in future. This finite supply makes Bitcoin attractive from an investment perspective as it poses minimal risk of devaluation unlike traditional fiat currencies which can be printed at any given time by central banks or governments.
First Halving Event in 2012: Cutting BTC Production by Half
The first halving event took place on November 28th 2012, reducing the number of BTC mined per block from 25 to 12.5 BTC. This marked an important milestone in Bitcoin’s history, as it increased scarcity and made it more difficult for miners to uncover new blocks and receive their rewards due to how competitive the market had become.
The halving had a major impact on how miners operate, as they now had to employ more efficient techniques such as Application Specific Integrated Circuits (ASICs) in order to remain cost-effective and remain profitable. The halving also caused transaction fees to rise due to increased competition among miners seeking higher payouts from users’ transaction fees.
With this halving event, only 21 million Bitcoins will ever enter circulation – meaning that no further coins can be created once all have been mined. This finite supply makes Bitcoin attractive from an investment perspective due to its relative scarcity and lack of devaluation risk unlike traditional fiat currencies which can be printed at any given time by central banks or governments.
This has led some analysts to predict that the limited supply could drive up Bitcoin’s value even further in the future – making it an increasingly attractive asset for investors looking for sound investments with long-term potential.
Second Halving Event in 2016: Another 50% Reduction in Block Rewards
The second halving event took place on July 9th, 2016 and saw an additional 50% reduction in the block reward from 12.5 BTC to 6.25 BTC. This made it even more difficult for miners to uncover new blocks and receive their rewards due to how competitive the market had become.
This change in the block reward was designed to further increase scarcity and keep Bitcoin’s supply rate consistent over time, while also incentivizing miners to use more efficient techniques such as ASICs in order to remain cost-effective and profitable.
This halving event also caused transaction fees to rise even further due to increased competition among miners seeking higher payouts from users’ transaction fees, resulting in Bitcoin becoming increasingly expensive for small transactions compared to larger ones.
With this second halving event now complete, only 3.125 million BTC will enter circulation each year on average – meaning that no further coins can be created once all have been mined. This finite supply makes Bitcoin attractive from an investment perspective due its relative scarcity and lack of devaluation risk unlike traditional fiat currencies which can be printed at any given time by central banks or governments.
This has led many analysts to predict that the limited supply could drive up Bitcoin’s value even further in the future – making it an increasingly attractive asset for investors looking for sound investments with long-term potential.
Third Halving Event in 2020: Dropping to 6.25 New Coins Per Block Found
The third halving event took place on May 11th, 2020 and saw a further reduction in the block reward from 6.25 BTC to 3.125 BTC per block. This is the most significant halving to date, resulting in a 50% decrease in how many new Bitcoins are created each block.
This change in the block reward was designed to encourage miners to use more efficient techniques such as ASICs and specialized mining rigs in order to remain profitable, while at the same time increasing Bitcoin’s scarcity and keeping its supply rate consistent over time.
Due to how competitive the mining market has become since this halving event, transaction fees have risen even further due to increased competition among miners seeking higher payouts from users’ transaction fees – making Bitcoin increasingly expensive for small transactions compared to larger ones.
With this third halving event now complete, only 1.5625 million BTC will enter circulation each year on average – meaning that no further coins can be created once all have been mined. This finite supply makes Bitcoin attractive from an investment perspective due its relative scarcity and lack of devaluation risk unlike traditional fiat currencies which can be printed at any given time by central banks or governments.
This has led many analysts to predict that the limited supply could drive up Bitcoin’s value even further in the future – making it an increasingly attractive asset for investors looking for sound investments with long-term potential. As of today, there are approximately 18 million Bitcoins left that can be mined before reaching a maximum supply of 21 million BTC.
Calculating how Much is Remaining with Current Circulation Statistics
The top 10 richest wallets in the Bitcoin world currently hold a total of more than 1 million BTC. These wallets are believed to be mostly associated with large cryptocurrency exchanges and whale investors, who together account for a significant share of the market.
In terms of how this wealth is distributed, it’s worth noting that most wallets contain very small fractions of a single BTC (known as SATs). According to recent reports, there are about 4 million wallets containing at least one satoshi (1/100 millionth of a Bitcoin), and only about 1 million wallets holding more than 0.01 BTC. This means that the majority of people who own Bitcoin have relatively small amounts when compared to those major players mentioned earlier.
To give an example of how few people control how much of the market, data from Coin Metrics shows that just five exchanges – Binance, Huobi, OKEx, Bitfinex and Kraken – account for over 70% of all Bitcoin trading volume. This implies that while many traders and investors utilize these exchanges to buy and sell Bitcoin, the majority of their profits ultimately refer back to the five entities behind them.
At the same time however, it’s important to remember that how much each wallet holds can change quickly and dramatically depending on how its owner chooses to use their funds. All things considered though, tracking overall market share between exchange platforms helps us understand how concentrated individual power has become in this space – a valuable insight for anyone wanting to make well-informed investment decisions with their hard-earned money.
All in all, the current number of Bitcoins left to be mined is 18 million. With this in mind, understanding how much of the market is controlled by certain powerful players can help investors make well-informed decisions when it comes to how they choose to invest their hard-earned money. It’s always important to remember that no matter how small or large your investment portfolio may be, doing your own research and staying informed is always key for success.
Also read: How Bitcoin Works?
Conclusion
The total number of Bitcoins currently left to be mined is 18 million. Depending on how quickly the remaining coins are mined, it is estimated that all 21 million coins will have been mined by the year 2140. This timeline however can be affected by a variety of different factors such as changes in hash rate, difficulty adjustments, and changes in block rewards – all of which can impact how quickly new Bitcoin is generated and how much mining reward miners receive for their efforts.
Changes in hash rate can affect how difficult it is to mine blocks, thereby influencing how quickly new Bitcoin enters circulation. Difficulty adjustments are designed to keep block production times consistent regardless of how much computing power is being used by miners. The lower the difficulty, the easier it is to mine a block and therefore more Bitcoin will be generated faster. On the other hand, if difficulty increases over time then miners need more computing power and energy to generate a single coin – leading to slower production rates overall.
Finally, changes in block rewards can also influence how fast Bitcoin mining occurs. Block rewards refer to the amount of newly created Bitcoin that miners receive for successfully mining a block – incentivizing them with additional income outside of transaction fees from users. As the Bitcoin network matures and supply decreases over time, the reward for each mined block reduces from 12 BTC at present to 6 BTC eventually halving once again in 2024 when only 3 BTC per block remain until all 21 million coins have been mined and no further reward remains available for miners.
All these factors together illustrate how many different external forces can influence how quickly or slowly new Bitcoins enter into circulation – making accurate predictions about when all 21 million coins will be mined is impossible without taking into account how these various variables might shift over time. As such, it’s important to stay informed on any potential changes that could affect future mining rewards so as not to miss out on any valuable investment opportunities while they are still available.
