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More Than 90% of Bitcoin Has Been Mined—What Does the Future Hold for Bitcoin?
15/04/2022
On Friday, April 1, 2022, the 19 millionth Bitcoin was created after more than 13 years of mining. Only 2 million Bitcoin remain out of the total supply of 21 million. A total of 730,334 Bitcoin blocks have been discovered, while the number of Bitcoin already created (mined/minted) stood at 19,000,250.00 BTC as of April 4, 2022.
The number of Bitcoin remaining in the system was 19,000,250.00 BTC as of April 2, 2022.
According to bitcoin.clarkmoody.com, 90.48% of Bitcoin had already been created, leaving 1,997,843.73 BTC. This means that the actual number of Bitcoin may be less than 21 million, and could stand at only 20,999,817.31 BTC. Even so, no one knows exactly how many Bitcoin remain in the system, as some may have been lost and some of the coins have never been used, with the exact number unknown.
Going back to 2009, Satoshi Nakomoto was created for the first time. The Bitcoin mining block was called Nakomoto, with a reward of 50 Bitcoin per block. It is estimated that more than $2.3 million worth of Bitcoin remains unclaimed, possibly because access keys have been lost or accounts have become inactive, similar to Satochi's coins.
In 2022, the Bitcoin mining reward was 6.25 Bitcoin per block, or approximately $300,000. The reward is generated through the collective work of miners and the computers processing transactions in a Pool. Over time, Bitcoin mining rewards decrease in a process known as Halving, which occurs every four years as designed by Satoshi. For every 10,000 blocks mined, the miners' reward is cut in half. This reward consists of newly created Bitcoin.
The reduction in the number of Bitcoin through Halving every four years is as follows:
- 2009: 50 coins per block
- 2012: from 50 coins per block to 25 coins per block
- 2016: from 25 coins per block to 12.25 coins per block
- May 2020: from 12.25 coins per block to 6.25 coins per block
- 2024: expected to decrease from 6.25 coins per block to 3.125 coins per block
- 2028: expected to decrease from 3.125 coins per block to 1.5625 coins per block
Many analysts expect all of the coins to be mined within the next 118 years, or by 2140.
The Halving that occurs every four years limits the amount that can be mined, causing the remaining Bitcoin supply to decline over time. Following a Block Reward Halving, this may be one of several factors that could drive the value of Bitcoin higher. It also brings the growth of the network's Total Network Hash Rate into a closer relationship with the growth in the value of Bitcoin.
Looking ahead, if all 21 million Bitcoin have been mined by 2140, Bitcoin-related transactions will continue, including trading and profit-making activities. Investors will likewise be able to continue participating in various activities. Alternatively, if Bitcoin becomes an asset held primarily for long-term value rather than for daily trading and profit-taking, transactions can still generate income or profits as before. However, earning profits from transaction fees may be more difficult than in the past. On the other hand, fee-based profits could arise when Bitcoin is traded in large transactions that generate substantial fees. For Bitcoin miners using computers to process transactions, mining income may decline, while revenue from mining-related fees such as Pool Mining Fee could become more important. Even ASIC equipment, which is essential to Bitcoin mining, may see its role diminish by 2140 if no Bitcoin remains to be mined.
Nevertheless, even after all Bitcoin has been mined, Bitcoin itself may evolve into something resembling digital gold, while the Bitcoin ecosystem continues to develop. Supply will remain a key factor for investors. Looking at the current situation, Bitcoin is gaining popularity and efforts are being made to enable its legal use in several countries. This should increase demand for Bitcoin and lead to more transactions on the Bitcoin blockchain. For example,
El Salvador is currently the only country to officially recognize Bitcoin as legal tender. It has invested in Volcano Bonds, issued to raise funds for Bitcoin-related projects, with a value of more than $1.5 billion. However, many countries continue to delay approval for the legal use of Bitcoin. In Brazil, for example, proposals to use Bitcoin are still under consideration in several major cities. Large investors also continue to increase their Bitcoin holdings, and the cryptocurrency remains popular among entities including MicroStrategy, Terra (LUNA), Tesla and Marathon Digital Holdings. The outlook for ownership and value may change from current conditions, and Bitcoin's value could continue to rise over the long term.
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