{[{item.pair.split("_")[0]}]} ${[{item.price.toFixed(4)}]}

{[{item.change24}]}%

{[{item.change24}]}%

In 2021, How Many BTC Are Left to Mine?

bitcoins left to be mined

June 17, 2021 | 

JOHN K MWANIKI |  0 Comments| 

1018 Views

Share:

Get Into Cryptocurrency Trading Today

Being the first to be established, bitcoin is currently the most popular cryptocurrency. Its launch also opened doors for the mining of other cryptocurrencies, which are about over 5000 now. Individuals following the crypto world closely understand that only 21 million bitcoins can be mined. 

How many bitcoins are in circulation in 2021? By February 2021, the number of bitcoins in circulation stood at 18.638 million. So the number left to mine is 2.362 million. Many questions surround the number of bitcoins that should be in circulation, how many there are, and what happens if the mining is exhausted. 

How many bitcoins should be mined, and why

Why are there limitations on the number of bitcoins that should be in circulation? While the reasons behind the founder choosing 21 million as the limit for the crypto’s supply are not known, there are other thought reasons considered sound. 

The limited supply exists based on the principle of finite supply. The finite or scarcity principle works such that there is a limited supply of goods and high demand for them. This theory suggests an imbalance between the demand and supply equilibrium, which impacts the price of the good.

Limiting how many bitcoins should be in supply leads to the appreciation of the cryptocurrency with time. The limit on how many cryptos should be in supply slows down the rate at which bitcoin is brought into the market. 

The limit also contributes significantly to the legitimacy of a digital currency. Worth noting also is that it creates scarcity which is a characteristic of coins. If miners could produce as many cryptos as they wanted, then they would have no value.

How is the 21 million limit achieved?

If how many bitcoins should be in existence can be dictated, then it means there is also a structure that ensures that this is achieved. 

To have only 21 million bitcoins in existence, a mining system called halving is implemented. In halving, the creation of bitcoin is cut by half. Note that this takes place in every 210000 mined. The mining takes every four years, so the number of bitcoins created every four years is cut by half. 

This will take place until all the 21 million bitcoins are mined. It is also essential for traders to understand that the system impacts the crypto market and especially bitcoin. When halving takes place, then it means there is a smaller supply in the market. This creates turbulence which has an impact on the price of the cryptocurrency. 

When will bitcoin mining stop?

Understanding how many bitcoins are in circulation and the number that should be mined to reach the 21 million limit can help you predict when the mining will stop. It is projected that the last bitcoins will be mined in 2140

By then, the value of cryptocurrency will have increased significantly. 

What will happen after all the 21 million bitcoins have been mined?

Eventually, the 21 million limit will be reached. The big question is, what will happen after? 

1. Miners will no longer get block rewards

Bitcoin miners get rewards for every valid block they mine. Remember that with halving, the block rewards the miners get changed every four years, and they reduce by half.

Once all the 21 million bitcoins are brought into existence, no more mining will occur. This only means the miners will not be getting these rewards. However, they will still be earning. That is through the transaction fees they collect from every confirmed transaction. Their job will be mainly ensuring there is security in the network as it is the source of their income. 

2. Impact on transactions

How many rewards the miners are getting will depend on the transaction fees paid. Miners will be getting higher rewards for transactions with higher fees. What does this mean? Miners could then start prioritizing transactions depending on the fees they attract.

The ones with higher fees will be executed faster than the ones with lower fees. 

3. Bitcoin price will increase

The halving already creates turbulence in the market, leading to an increase in the value of the crypto. The finite principle applied creates a low supply compared to the demand, which impacts the price. 

As the crypto’s price increases, the miners will also be getting higher transaction fees

4. Investors could be motivated to show interest in crypto

Once bitcoin mining stops, there will be scarcity. Scarcity means an increase in the crypto’s value. The potential dramatic price gain will attract investors.

How many bitcoins are left to be mined, and what are the special considerations?

The current bitcoin protocols make it almost possible for us to forecast where bitcoin will be in years to come and how the market will look. However, note that this is in a perfect world. A lot could happen along the way.

Once mining stops, there will be scarcity which could lead to an increase in the cryptocurrency price. Also, miners will stop getting the incentives they get from their work. However, this does not mean they will not be earning.

They will be getting incentives from the transaction fees, which could also become higher as the price of the crypto increases.

While this could be the case, a lot can change. Remember that a lot has happened to bitcoin between the time it was established and now. The same could happen. The answer to the question, how many bitcoins should exist could change. The existing bitcoin protocols could be altered so that more of them can be mined. 

The other possibility is, bitcoin would have to rely on the transaction fees. When this happens, then the value of the crypto would start to deflate. To the same effect, crypto could become a deflationary currency. How will this happen?

The mining activity supports the currency’s inflation. Once mining stops, this could stop too, and it will stop inflating. A lot could happen between now and 2140; keep your eyes on the blockchain. 

Buy & Sell Cryptocurrency Instantly

Share:

COMMENTS

0 Comments

Like this article

CREATE ACCOUNT

Have an account? Login

LIVE RATES

ALL

TRENDING

Total Market Cap The Total Market Capitalization (Market Cap) is an indicator that measures the size of all the cryptocurrencies.It’s the total market value of all the cryptocurrencies' circulating supply: so it’s the total value of all the coins that have been mined.

{[{ marketcap }]} {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H) {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H)

Symbol

Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting all the data from several exchanges to provide the most accurate price available.

24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current price and the price24 hours ago.

Trade

{[{ item.pair.split('_')[0] }]}

Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

TRADE

Showing {[{ showing }]}

Symbol

Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting allthe data fromseveral exchanges to provide the most accurate price available.

24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current priceand the price24 hours ago.

Trade

{[{ item.pair.split('_')[0] }]}

Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

TRADE

Showing {[{ showing_trend }]}

WHAT'S NEW

NEWS

REVIEWS

BROKERS

WALLET