What happens when all Bitcoins are mined? Unlike normal currencies, Bitcoin, and some other cryptocurrencies, have a limit capacity meaning there will come a time when all Bitcoins will be mined and the reserves will be tapped out. This article will explain the current Bitcoin mining rate, the importance of the Bitcoin transaction fee, and what will happen to Bitcoin.
Q: Who created Bitcoin?
A: Bitcoin was created on November 31, 2008 by Satoshi Nakamoto. Satoshi is a pseudonym and who this person, or group, is remains unknown to this day. The creation of Bitcoin also fathered a new technology, the blockchain, whose applications and usage keep expanding outside of cryptocurrencies and will change the way many industries work.
While Bitcoin was created by Satoshi, it is the community, or nodes, that keep it alive and functioning and may thus determine where this promising breakthrough will lead us and how it will be changed.
Q: How many Bitcoins are mined per day?
A: Bitcoin blocks are designed so that they can be mined every 10 minutes, on average, for a total of 144 blocks per day. As of now, 12.5 Bitcoins are created, and given as a reward, for each new block meaning there are 1800 new Bitcoins every day. This number is determined by the blockchain and is halved every 4 years. Initially, 50 Bitcoins were created per block but in 2012 the first halving reduced that number to 25, the second halving in 2016 further reduced it to today’s 12.5, and the next halving in 2020 will bring it down to 6.25.
Q: What’s the number of Bitcoins in circulation?
A: As of press-time on the 19th of December 2018, over 17,430,000 Bitcoins were mined and are either actively traded or hodled in wallets. With the max cap being 21 million, this leaves less than 3.560,000 Bitcoins left to be mined if the Bitcoin protocol is not changed through a hard fork.
After a total of 64 halvings, the total cap of Bitcoins will be tapped out somewhere around 2140.
Q: What happens when all Bitcoins are mined?
A: With each following Bitcoin mining halving the Bitcoin reward and incentive for miners will reduce; this will lead to an increased dependency, and expected increase, in transaction fees to maintain equilibrium.
As such Bitcoin being tapped out does not mean all transactions will stop as transaction fees will replace mining rewards as incentives for miners to continue their work. This will also increase the deflationary nature of Bitcoin as what is rare and wanted becomes more expensive, making the Bitcoin price rise.
Lastly Bitcoin max cap could also be changed or removed through a hard fork should most of the community back the move.
To conclude, Bitcoin still has a bright future ahead of itself and will continue to thrive after all the Bitcoins are mined as transaction fees replace mining fees and the price surges. This article was brought to you by Bybit, a cryptocurrency derivatives exchange aiming to create a fairer crypto market through transparency, speed, and bringing a more human touch to an otherwise cold and unregulated industry. We hope to see you back soon, and are happy to see you share our interest in the world of cryptocurrencies.