The original bitcoin developer, hiding behind the pseudonym of Satoshi Nakamoto since 2008, expressed one condition when writing the source code for bitcoin: to put a strict limit on the number of bitcoins that can ever be produced, which is 21 million. According to recent reports, 18.90 million total bitcoins have been put into circulation since January 2022. The remaining 2.1 million bitcoins are still to be mined. Placing a hard limit ensures that the currency will act as a store of value in the future and its price will rise along with demand and decreasing supply.
The price of bitcoin hit an all-time low of $ 65.53 on July 5, 2013 (9 years ago). Bitcoin has never reached this price since 2013, but no one was aware of the use of bitcoin at the time, so people were afraid to invest in it. Bitcoins are rare and the demand for the asset increases over time. Therefore, the price of bitcoin is worth millions of times more than its initial value, it is currently trading at $ 41,339.24. If someone had invested in it in the early stages, they would have gotten 30616.34% more.
It is predicted that within the first few years of the next decade nearly 99% of total bitcoins will have been mined, but to mine the last 1% it will take nearly a century, but why? According to Documenting Bitcoin “Satoshi Nakamoto programmed the last bitcoin to be mined in 2140, which means that they intentionally created something that he would never see the end of. Almost 13 years after the birth of bitcoin, only 10% of the cryptocurrency remains to be mined.
Bitcoin mining is the name of the business that generates new BTC. Miners receive a reward for every valid block generated and added to the bitcoin network. Along with the mining rewards, the transactions are processed and validated by the miners and the transaction fees are also passed on to the miners. Each valid block added to the bitcoin network currently generates 6.25 BTC in rewards, plus commissions. Every four years B.itcoin Halving halves premiums.
In May 2020, the bitcoin halving reduced miners’ rewards to 6.25 BTC per block, up from 12.5 BTC per block in 2016. In other words, nIn 2024, another reward cut will occur, making each block only have 3.12 BTC in reward. And this is precisely the magic that will make the 10% of the remaining bitcoins to be mined take much longer than the first 90%, almost more than 100 years.