The crypto king had seen a bearish price lately. Bitcoin is currently trading at $ 47,981.51, up from a high of $ 68,789.63 in November, according to CoinMarketCap data. Currently, the largest cryptocurrency, Bitcoin, has only gained 110% in a year, much less than many altcoins that have seen huge gains.
In the crypto world, however, Bitcoin is the largest and most resilient cryptocurrency. In December, BTC hit a new milestone with the announcement that 90% of all of its 21 million bitcoins had been mined.
Before the story continues, let’s take a look at Bitcoin mining to date.
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What does it mean that 90% of bitcoins have been mined?
Bitcoin inventor Satoshi Nakamoto predicted that there would be 21 million coins when he launched Bitcoin in 2009.
The logic for tying bitcoin to a firm supply was to develop a mechanism that would continuously drive the price of bitcoin. However, as Bitcoin became more popular, the number of miners accelerated, resulting in Bitcoin mining being faster than expected.
In the meantime, it is expected that not all 21 million bitcoins will be available in the open market. Cryptanalysis firm Chainalysis reports a loss of 3.7 million bitcoins due to various reasons, including death from misplacement of private keys.
Additionally, 1 million bitcoins are still being held untouched by Bitcoin’s mysterious creator, Satoshi Nakamoto, because the anonymous person / s mined the amount.
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What does the halving of the schedule mean for Bitcoin?
Due to the halving plan, the remaining supply will take exponentially longer to be mined even though 90% of the bitcoins have been mined.
Let’s take a look at the reasons why Bitcoin will be completely mined by 2140.
- The halving plan is an inflationary control mechanism that cuts the reward for mining Bitcoin by half.
- Bitcoin is halved roughly every four years after mining 210,000 blocks.
- According to CoinDesk, at this rate, Bitcoin will not be fully mined until February 2140.
- Bitcoin’s blockchain is based on the proof-of-work model, in which miners solve complex mathematical equations to authenticate transactions on the blockchain. These miners are compensated with Bitcoin.
- Halving plans cut their reward in half at certain intervals, which discourages further mining as the energy and equipment costs to mine can be prohibitive.
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Bottom line
Given the scarcity of supply and the growing adoption of BTC around the world, it is currently the number one cryptocurrency in terms of market capitalization. Therefore, although many cryptos will appear in the crypto world, it seems difficult to replace Bitcoin anytime soon.
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