Have you ever used bitcoin

What Happens to Bitcoin After All 21 Million Are Mined?

Bitcoin is like digital gold in many ways. Like gold, bitcoin cannot simply be created arbitrarily; it requires work to «extract.» While gold must be extracted from the physical earth, bitcoin must be «mined» via computational means.

Bitcoin also has a stipulation—set forth in its source code—that it must have a limited and finite supply. For this reason, there will only ever be 21 million bitcoins ever produced. On average, these bitcoins are introduced to the Bitcoin supply at a fixed rate of one block every ten minutes. In addition, the number of bitcoins released in each of these aforementioned blocks is reduced by 50% every four years.

Key Takeaways

• There are only 21 million bitcoins that can be mined in total.
• Once bitcoin miners have unlocked all the bitcoins, the planet’s supply will essentially be tapped out.
• As of February 24, 2021, 18.638 million bitcoins have been mined, which leaves 2.362 million yet to be introduced into circulation.
• Once all Bitcoin has been mined the miners will still be incentivized to process transactions with fees.

The Supply of Bitcoin Is Limited to 21 Million

In fact, there are only 21 million bitcoins that can be mined in total. Once miners have unlocked this number of bitcoins, the supply will be exhausted. However, it’s possible that bitcoin’s protocol will be changed to allow for a larger supply. What will happen when the global supply of bitcoin reaches its limit? This is the subject of much debate among fans of cryptocurrency.

Currently, around 18.5 million bitcoins have been mined. This leaves less than three million that have yet to be introduced into circulation.

While there can only ever be a maximum of 21 million bitcoins, because people have lost their private keys or have died without leaving their private key instructions to anybody, the actual amount of available bitcoins in circulation could actually be millions less.

Bitcoin Mining Rewards

The first 18.5 million bitcoins have been mined in the ten years since the initial launch of the Bitcoin network. With only three million more coins to go, it might appear like we are in the final stages of bitcoin mining. This is true but in a limited sense. While it is true that the large majority of bitcoins have already been mined, the timeline is more complicated than that.

The Bitcoin mining process rewards miners with a chunk of bitcoin upon successful verification of a block. This process adapts over time. When bitcoin first launched, the reward was 50 bitcoins. In 2012, it halved to 25 bitcoins. In 2016, it halved again to 12.5 bitcoins. As of February 2021, miners gain 6.25 bitcoins for every new block mined—equal to about $294,168.75 based on February 24, 2021, value. This effectively lowers Bitcoin’s inflation rate in half every four years.

The reward will continue to halve every four years until the final bitcoin has been mined. In actuality, the final bitcoin is unlikely to be mined until around the year 2140. However, it’s possible that the Bitcoin network protocol will be changed between now and then.

The Bitcoin mining process provides Bitcoin rewards to miners, but the reward size is decreased periodically to control the circulation of new tokens.

Impacts of Finite Bitcoin Supply on Bitcoin Miners

It may seem that the group of individuals most directly affected by the limit of the bitcoin supply will be the Bitcoin miners themselves. Some detractors of the protocol claim that miners will be forced away from the block rewards they receive for their work once the bitcoin supply has reached 21 million in circulation.

But even when the last bitcoin has been produced, miners will likely continue to actively and competitively participate and validate new transactions. The reason is that every Bitcoin transaction has a transaction fee attached to it.

These fees, while today representing a few hundred dollars per block, could potentially rise to many thousands of dollars per block, especially as the number of transactions on the blockchain grows and as the price of a bitcoin rises. Ultimately, it will function like a closed economy, where transaction fees are assessed much like taxes.

El Salvador made Bitcoin legal tender on June 9, 2021. It is the first country to do so. The cryptocurrency can be used for any transaction where the business can accept it. The U.S. dollar continues to be El Salvador’s primary currency.

Special Considerations

It’s worth noting that it is projected to take more than 100 years before the Bitcoin network mines its very last token. In actuality, as the year 2140 approaches, miners will likely spend years receiving rewards that are actually just tiny portions of the final bitcoin to be mined. The dramatic decrease in reward size may mean that the mining process will shift entirely well before the 2140 deadline.

It’s also important to keep in mind that the bitcoin network itself is likely to change significantly between now and then. Considering how much has happened to Bitcoin in just a decade, new protocols, new methods of recording and processing transactions, and any number of other factors may impact the mining process.

The latest significant events are the Office of the Comptroller of the Currency (OCC) letter in January 2021 authorizing the use of crypto as a method of payment, Paypal’s introduction of Bitcoin, and Tesla’s acceptance of Bitcoin to purchase Tesla cars and solar roofs. Tesla reversed course on accepting Bitcoin in May 2021, citing environmental concerns around the resources required to mine Bitcoin.

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Have you ever used cryptocurrency?

Lord Saru

Cryptocurrency, as you know, is a block chain mediated decentralized peer reviewed currency system. Post 2018, most of the governments have outlawed the cryptocurrency owing to the fact that they deem it a threat to their financial integrity.

Back from where I come from, the government wants it banned but the judiciary is taking a different stance and I dont know anyone that uses cryptocurrency.

Do you all use it? Are you familiar with these terms like mining, mixing and all those? How does it exactly work?

yagami2009

Gmorning

Clout

Demon_skeith

Bunker Hosting

I have been quite heavily involved in the cryptocurrency/blockchain space over the last year.

The main problem I see in the space is people only speculating on the price, and not actually using the coins for what they are designed for. This is why SO many people lose money when «investing» into crypto. If you take a look at CoinMarketCap you will see 1000s of different coins, which 99% are ALL garbage.

Some of these coins have an actual use-case (Staking coins for interest, consensus of the blockchain, lending loans, recieving loans) but majority of people just hold them on exchanges, and speculate on the price while the exchange is actually using the coins for their use case; not just speculation. It is a steep learning curve, but anything worth learning is never just given to you.

Crypto is still one of the biggest inovations of our time, it is just still in its very early days.

Robert

Nicodemous52

I’ve always been skeptical of the crypto. I don’t understand why the people that say the dollar is a fiat currency (and to be fair, it is) want to put their faith in something with even less tangible value than dollar bills. Dollar bill are at least printed on a physical mediums. If they are worth nothing, they are worth at least the paper printed on.

Crypto doesn’t even have that. It’s just a bit of code on a grid somewhere. I fail to see how it’s any less a fiat currency than any other is.

Robert

I’ve always been skeptical of the crypto. I don’t understand why the people that say the dollar is a fiat currency (and to be fair, it is) want to put their faith in something with even less tangible value than dollar bills. Dollar bill are at least printed on a physical mediums. If they are worth nothing, they are worth at least the paper printed on.

Crypto doesn’t even have that. It’s just a bit of code on a grid somewhere. I fail to see how it’s any less a fiat currency than any other is.

Trashpanda

Hakametal

I think you need to experience using crypto to appreciate it. No banks, no intermediaries, no governments, just free people using money that cannot be stopped by anyone.

First 3 people to download a Bitcoin Cash (BCH) wallet and post their receive address here gets $10 bucks.

Empire

Bunker Hosting

I’ve always been skeptical of the crypto. I don’t understand why the people that say the dollar is a fiat currency (and to be fair, it is) want to put their faith in something with even less tangible value than dollar bills. Dollar bill are at least printed on a physical mediums. If they are worth nothing, they are worth at least the paper printed on.

Crypto doesn’t even have that. It’s just a bit of code on a grid somewhere. I fail to see how it’s any less a fiat currency than any other is.

You haven’t done much research into the topic I guess, it is much more than «a bit of code». It is TONS of lines of code, not just hosted on «a grid somewhere» but it is hosted EVERYWHERE. Anyone participating in the Bitcoin network is hosting their own bank per say.

It is different to fiat by the fact that goverments can create as many dollars as they want. The difference is they can create this directly out of «thin air» but with Bitcoin you cannot just decide you need more and create it. Creating the currency actually takes power (Similiar to what Henry Ford spoke about, a currency based of off energy usage).

Just to touch on one last point; «They are worth at least the paper printed on» which is completely useless, and I am sure the people of Venezuela, Chile, Lebanon, or Zimbwawe actuallyVenezuela, Chile, Lebanon, or Zimbwawe actually understand how worthless their money is.

Imagine having to create stuff out of «money» to try and sell because it is completely worthless.
This is true everywhere, money only has value because people believe in their different goverments..

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Bitcoin price suddenly surges to 3-year high

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It does though. Your assertion is that you don’t have to use an exchange of some kind but in reality you do.

Let’s use your hypothetical example. You sell a sack of turnips for 1/480th of a Bitcoin (what are the odds that this buyer has a wallet with exactly 1/480th of a bitcoin?). You buy a sack of apples for 1/360th of a Bitcoin. How do you make up the difference? Cash will have to be introduced at some point in the transaction. Therefore an exchange will be necessary.

My point is that an exchange will be necessary.

Papahyooie

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It does though. Your assertion is that you don’t have to use an exchange of some kind but in reality you do.

Let’s use your hypothetical example. You sell a sack of turnips for 1/480th of a Bitcoin (what are the odds that this buyer has a wallet with exactly 1/480th of a bitcoin?). You buy a sack of apples for 1/360th of a Bitcoin). How do you make up the difference? Cash will have to be introduced at some point in the transaction. Therefore an exchange will be necessary.

Negative. You just don’t have an imagination.

Ted runs a service transferring crypto for a fee (in BTC, directly on the blockchain, not through an exchange). Bob tells Ted to put 1/480th into a new wallet from his own wallet. Ted does so.

Bob hands me the new wallet. I now have 1/480th of a bitcoin.

I hand that to Ted and say put this in my own wallet where I keep my crypto. Ted does so.

Reverse the process for Sally, and whatever her fee amount is for apples.

Ted never knows my name any more than the cashier at walmart does. I’m just a customer. I maintain my anonymity and complete lack of connection to the internet. It’s up to Ted to handle his own anonymity on the internet.

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Negative. You just don’t have an imagination.

Ted runs a service transferring crypto for a fee (in BTC, directly on the blockchain, not through an exchange). Bob tells Ted to put 1/480th into a new wallet from his own wallet. Ted does so.

Bob hands me the new wallet. I now have 1/480th of a bitcoin.

I hand that to Ted and say put this in my own wallet where I keep my crypto. Ted does so.

Reverse the process for Sally, and whatever her fee amount is for apples.

Ted never knows my name any more than the cashier at walmart does. I’m just a customer. I maintain my anonymity and complete lack of connection to the internet. It’s up to Ted to handle his own anonymity on the internet.

Papahyooie

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I will refer back to my statement that BTC and crypto in general was developed SPECIFICALLY to be illegal, or at least alegal. So we’re going to assume that Ted did not register with anything. But he could have done so, if he was so inclined.

Ted’s anonymity is not the concern, nor is it necessary to prove Ted’s anonymity in order to prove that truly anonymous transactions are possible, as I have shown above.

However, if the reader cares to extrapolate and do a little deductive reasoning, consider that Ted could possibly run his own VPN server on a virtual machine purchased outside his legal jurisdiction, perhaps in a non extradition country for added safety. Ted could be certain that the VPN software saves no logs and destroys what is in memory as soon as it is used. Ted could have used local currency, temporary gift cards bought with cash (or even crypto!), or a pseudonymized card service to pay for the virtual server. He could register for all of this under a pseudonym such as «Seymore Butts», or better yet multiple pseudonyms. Ted could use self-signed certs to be certain that his traffic is SSL encrypted and completely anonymous.

Consider also that myself, Bob, and Sally could just do all of this ourselves, and cut out Ted the middle man.

The more you understand about how this works, and adding in a little imagination and problem solving skills, the more fishy what happened with this ransomware attack seems. And the sillier the statement «if the government wants to find you, they will» seems as well.

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