The Bitcoin protocol dictates a hard cap on the total number of bitcoins that will ever exist: 21 million coins.
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Circulation and Mining
As of сегодня, a significant portion of the total bitcoin supply has already been mined. Estimates suggest that over 90% of all bitcoins have been mined. The remaining coins will be released over time through a process called “mining,” where new blocks are added to the blockchain, and miners are rewarded with newly minted bitcoins.
Halving Events
Bitcoin’s mining reward is designed to decrease over time through events called “halvings.” Approximately every four years, the block reward given to miners is cut in half. This mechanism ensures that the rate at which new bitcoins are introduced into circulation gradually slows down, ultimately leading to a finite supply.
Why a Limited Supply?
The limited supply of Bitcoin is a fundamental aspect of its design and a key differentiating factor from traditional fiat currencies. This scarcity is intended to make Bitcoin a store of value and protect against inflation.
Fully Diluted Valuation
The fully diluted valuation of Bitcoin is calculated by multiplying the current market price by the total possible supply of 21 million coins. This metric provides a theoretical view of Bitcoin’s market capitalization if all coins were in circulation.
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Lost Bitcoins
It’s important to note that while 21 million bitcoins will eventually be mined, not all of them are currently accessible or actively circulating. A significant number of bitcoins are believed to be lost forever due to forgotten private keys, inaccessible wallets, or other unfortunate circumstances. This loss of coins effectively reduces the actual circulating supply.
Impact on Price and Scarcity
The combination of a fixed total supply and the possibility of lost coins contributes to Bitcoin’s perceived scarcity. This scarcity is a major driver of Bitcoin’s value proposition and its potential as a hedge against inflation.
Future of Bitcoin Mining
As the remaining bitcoins become increasingly difficult to mine, the mining landscape will likely evolve. Transaction fees, rather than block rewards, may become the primary incentive for miners to maintain the Bitcoin network. This transition is a crucial aspect of Bitcoin’s long-term sustainability.
The total number of bitcoins is capped at 21 million, a fundamental feature that distinguishes it from traditional currencies. While the vast majority of bitcoins have already been mined, the remaining coins will be released gradually, contributing to Bitcoin’s scarcity and potential as a store of value.
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The Last Bitcoin
The exact date when the last bitcoin will be mined is difficult to predict with certainty, but estimates place it sometime in the 22nd century. As the block reward continues to halve, the rate of new bitcoin creation will slow dramatically, stretching out the mining process over many decades.
Beyond Mining: The Future of the Network
Once all 21 million bitcoins have been mined, the Bitcoin network will transition to a system primarily reliant on transaction fees to incentivize miners. This shift is crucial for the long-term sustainability and security of the blockchain. Miners will continue to validate transactions and maintain the integrity of the network, earning fees for their services.
Divisibility and Microtransactions
Although the total number of bitcoins is limited to 21 million, each bitcoin is divisible down to eight decimal places, representing 100 millionths of a bitcoin, known as a “satoshi.” This divisibility allows for microtransactions and facilitates the use of Bitcoin in a wide range of applications, even as the price of a single bitcoin increases.
Bitcoin’s Enduring Scarcity
The hard cap of 21 million bitcoins remains a cornerstone of its value proposition. This scarcity, combined with increasing adoption and awareness, continues to fuel interest in Bitcoin as a decentralized and censorship-resistant form of digital currency.
