It has reached a milestone in Bitcoin’s supply schedule – 94% of the total Bitcoin supply Mining has produced a total of 2,500 BTC. Over 19.74 millions BTC have already been mined out of the 21 million BTC hard cap.
Bitcoins are created through mining. This is where computers verify transactions in exchange for Bitcoin. Mining subsidy initially was set at 50 BTC/block, but this has been reduced to half every 210.000 blocks.
The event is called Bitcoin halvingIt ensures that the inflation rate will decrease as demand increases. The subsidy has been cut in half three times, from 50 BTC down to 25 BTC and then to 12.5, which is now 6.25 BTC.
The halvings As bitcoins become more difficult to mine, they are less likely to be created. Since the launch of Bitcoin in 2009, more than 94% (19741,655 BTC) or 21 million BTC were mined.
This leaves around 1,26,000,000 BTC. Using the 6.25 BTC reward for a block, it will be over 100 years before the remainder of the supply is fully minted. By 2140, 99.9% all Bitcoin will have been mined according to experts. Miners are expected to earn fees and not subsidies.
Bitcoin’s key value proposition is its controlled supply. Bitcoin will become more scarce over time as the demand increases and issuance decreases. This is a key feature for investors who are concerned about currency debasement and unlimited printing of fiat currencies.
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Source: bitcoinmagazine.com