“I do think Bitcoin is the first encrypted money that has the potential to do something like change the world.” — Peter Thiel, Co-Founder of PayPal
Bitcoin has reached a significant milestone in its controlled supply schedule, with 94% of the total supply now mined. Since its inception in 2009, over 19.74 million BTC have been brought into circulation out of the hard-capped limit of 21 million BTC.
Bitcoin’s supply issuance is governed by a process known as mining, where computers validate transactions on the network and are rewarded with Bitcoin. This process began with a mining subsidy of 50 BTC per block, which is halved every 210,000 blocks, or roughly every four years. These halving events ensure that Bitcoin’s inflation rate decreases over time, making it increasingly scarce.
✦ 94% of Bitcoin’s Supply Has Now Been Issued:
A significant milestone has been reached in #Bitcoin $BTC‘s issuance schedule, with 94% of the total 21 million #Bitcoin $BTC supply now mined. pic.twitter.com/8XDHXlsjaP
— ZoneCrypto (@_ZoneCrypto_) August 19, 2024
There have been three such halving events to date, reducing the block reward from 50 BTC to 25 BTC, then to 12.5 BTC, and currently to 6.25 BTC. These halvings, combined with rising mining difficulty and competition, mean that fewer new bitcoins are entering circulation as time goes on.
With over 94% of the total supply already mined, only around 1.26 million BTC remain to be issued. Given the current block reward of 6.25 BTC, the remaining supply will be gradually mined over the next century, with experts estimating that 99.9% of all Bitcoin will be mined by 2140. By then, miners will primarily earn revenue from transaction fees rather than block subsidies.
94% of Bitcoin’s Supply Has Now Been Issued https://t.co/PDqv2gBF90
A milestone has been reached in Bitcoin’s supply schedule – 94% of the total Bitcoin supply has now been issued through mining. Out of a hard-capped total of 21 million BTC, over 19.74 million have been min… pic.twitter.com/BsgMwlBPYZ— Crypto news (@Cryptocie_com) August 19, 2024
This carefully controlled supply schedule is a core feature of Bitcoin’s appeal, particularly for investors wary of the potential risks associated with fiat currencies, such as unlimited money printing and inflation. As Bitcoin’s issuance slows and demand continues to grow, its scarcity is expected to increase, potentially enhancing its value as a digital asset.
Quotes
- “Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value.” — Eric Schmidt, Former CEO of Google
- “Bitcoin will do to banks what email did to the postal industry.” — Rick Falkvinge, Founder of the Swedish Pirate Party
Key Points:
- 94% of the total Bitcoin supply has now been mined, with over 19.74 million BTC out of a maximum 21 million already issued.
- Bitcoin’s issuance is controlled by a halving process, reducing mining rewards every 210,000 blocks to slow down supply growth.
- The current mining reward is 6.25 BTC per block, a significant reduction from the initial 50 BTC reward in 2009.
- Only about 1.26 million BTC remain to be mined, a process expected to continue until approximately 2140.
- Bitcoin’s predictable and diminishing supply is a key aspect of its value, appealing to investors concerned about inflation and currency debasement.
Fallon Jacobson – Reprinted with permission of Whatfinger News
