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Since bitcoin made its debut on the scene in 2009, it has definitely increased in value continuously. Nevertheless, despite its many evolutions, a certain element has remained constant: the limited amount of bitcoin available, set by its creator, Satoshi Nakamoto, at 21 million. Currently, having mined around 18.5 million bitcoins, we are inevitably approaching this upper limit. In this article, we will try to take a look at how much bitcoin there is, what might happen when this limit is reached and the last bitcoin is mined.
What could be the consequences of reaching the maximum amount of bitcoin? We will provide the answer to this question shortly. However, in order to better understand this issue, we need to go back to some concepts, namely, what bitcoin is and how they are generated.
Bitcoin is a type of cryptocurrency or digital currency that acts as a medium of exchange and serves as a store of value. BTC does not physically exist and is not under the control of any particular country; it is a virtual currency with an unstable value.
It's a complex topic, so we refer you to our comprehensive guide on Bitcoin to learn more about it.
The Bitcoin network is responsible for creating and distributing random amounts of coins, about every 10 minutes, to users who participate in the network or bring their computing power to ensure the security of the network.This process of generating this currency is called BTC mining (similar to gold mining); the chance of winning a Bitcoin prize depends on computing power and competition.
Due to the huge number of operations required to successfully create a single block, this requires a large amount of resources in the form of electricity and computing power. Consequently, most miners join a so-called "mine" to share resources and generated blocks according to how many resources each miner contributes.
Periodically, miners discover new BTC blocks and solve a complex cryptographic puzzle, allowing them to create a new block on the Blockchain.
Each block contains a set of transactions that have been previously verified and placed on a waiting list. They are usually selected based on transaction fees set by senders. Once a new block is found, the miner receives a certain number of Bitcoins as compensation for his work, which is called a block reward.
To date, about 18.5 million Bitcoins have been mined, representing 88.3% of the maximum supply.
A peek at the history of Bitcoin mining will help us understand how much Bitcoin is currently in circulation. The period from 2009 to 2013 was a period of intense mining, in which 10.5 million Bitcoins were mined, more than half of the current supply. At the time, the reward per block was 50 BTC, which meant a total of 210,000 blocks. The reward was then halved during Bitcoin's first halving, and the mining of another 210,000 blocks resulted in the addition of 5,250,000 BTC to circulation.
If the process continues as planned, there will be 20,999,999.3 bitcoins in the world after 34 halving, which is expected to occur in 2144, and the reward per block will be zero BTC. The bitcoin mining process is getting slower and slower as time goes on, due to the so-called "halving", which occurs every four years and results in halving the reward for miners.
The term refers to a mechanism that halves the mining reward every four years. The last halving took place in 2020, and the next is scheduled for 2024.
At the beginning of Bitcoin's existence, the reward for mining was 50 BTC (in 2009). After the first halving, which took place on November 29, 2012, the reward dropped to 25 BTC. The next halving, which took place on July 9, 2016, saw the reward reduced to 12.5 BTC. Currently, after the last halving in May 2020, miners receive 6.25 BTC. It is worth noting that these changes in rewards and the 21 million-unit limit play an important role in fighting potential deflation and maintaining Bitcoin's value.
But what exactly is the process of mining cryptocurrencies? Generating new units of bitcoin is referred to as "mining" or "digging," drawing an analogy with the mining of natural resources such as gold. In practice, this means transferring computing power to confirm transactions on the network. Various types of devices are used for this, such as CPUs, GPUs, FPGAs and ASICs. The more computing power contributed by these devices, the greater the chance of receiving a reward. All the nodes in the network compete with each other to solve a complex cryptographic problem as quickly as possible. As a result, the greater the number of miners involved in the mining process, the higher the difficulty level becomes.
There are currently about 19 million bitcoin in circulation, and this number is constantly changing as new blocks are mined. Each new block that is mined adds 6.25 bitcoins to the total supply.
It is expected to be able to mine about 900 bitcoin per day in 2023.
Bitcoin has a maximum limit of 21 million BTC that can be mined. It is estimated that the last bitcoins will be mined in 2140. This means that when the maximum limit is reached, miners will no longer receive rewards for creating blocks, but will continue to receive the transaction fees included in each new block. The bitcoin network will continue to function, albeit without the newly mined bitcoins.
Miners will no longer be motivated by the ultimate reward, but will continue to earn transaction fees.
The future of bitcoin ATMs, once all the bitcoins have been mined, may become a subject of speculation and analysis. Bitcoin ATMs, currently an indispensable tool for easy access to this cryptocurrency, may face the need to adapt to new market conditions. When the reward for mining a new block falls to zero, transaction fees will become the main source of revenue for miners, which could affect the profitability and availability of ATM services. It is possible that Bitcoin ATMs will use innovative business models in the future to continue to provide value for their users and owners.
It is worth considering whether the end of mining the last unit of bitcoin will trigger a mass exodus of miners, who will begin to seek profits in digging other cryptocurrencies. However, it should not be forgotten that miners not only profit from mining blocks, but also from the transaction fees that users pay for each bitcoin transfer (the higher the fee, the faster the transaction), and as the number of users increases, the fees for miners can be higher, as each block has its own limit. An example of this is the large transfer of 94,504 BTC (about $1 billion), in which a single fee was 0.06534852 BTC (about $700).
Currently, the implementation of cryptocurrencies is still in its early stages, and it will take years of work to achieve widespread acceptance of bitcoin as a medium of exchange. In addition, bitcoin's fluctuating value, often converted to traditional currencies, presents challenges that hinder mass adoption. We can surmise that the value of bitcoin itself will have a deflationary trend after 2140 (the projected date), as the number of available units will never exceed 21 million.
Below you will find answers to the most frequently asked questions about bitcoin quantities.
Bitcoin is unique in that the number of available units is limited to 21 million. However, this limitation is not absolute, as Bitcoins can be divided into eight decimal places (0,000,000 01 BTC) and into smaller units if necessary in the future.
Bitcoin's creator, known as Satoshi Nakamoto, remains the largest known Bitcoin holder. Nakamoto is estimated to hold about 1.1 million Bitcoins based on early mining data.
Bitcoin's current price exceeds $30,000.
It took about 13 years to mine the current bitcoin, starting with the first block dug in 2009. April 1, 2022 saw the mining of the 19-millionth bitcoin in block 730002 by SBI Crypto. However, the remaining 2 million BTC will be mined at a much slower pace, and it is estimated that the last unit will not be mined until 2140 at the earliest.
It is also interesting to note that about 20% of bitcoin is likely to have been lost due to the loss of access keys to cryptocurrency wallets. However, even more interesting is the fact that only 18-19% of mined units are actively used in transactions, while the rest are "dormant" on wallets. This means that most bitcoin is held by long-term investors.
Mining cryptocurrencies is extremely profitable for Kadena, for example. Currently, the best digger for mining Ethereum can generate a daily profit of $245 (net of electricity-related costs). However, an excavator for mining KDA can make as much as $460 in daily profit.
Bitcoin's value has risen from around €15,000 in early 2023 to an impressive €27,295.75. This rapid growth is particularly significant given the difficulties that followed the COVID-19 pandemic.
By 2025, although Bitcoin may lose some of its dominant status, it will still enjoy exceptional prestige compared to most other cryptocurrencies. Nevertheless, there is a possibility that by 2025 competitors will have created more advanced projects, which could significantly change the current landscape.
Keep in mind that accurate forecasts for cryptocurrencies are difficult to make. However, by 2030, one can expect significant development and wider use of cryptocurrencies in everyday life.
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