Only 2 million bitcoins left to mine – why does it matter?

Bitcoin surpassed a historical benchmark on Friday with the issuance of 19 million coins.

This means that there are only 2 million coins left for anyone interested in owning the world’s most sought-after digital asset.

BTC is traded at $46,750 On Coingecko as of early Saturday evening, up 5.5% in the past seven days.

According to CryptoVault CEO Kjetil Hov Petersen, while many may consider this a minor quantity, the remaining units may better symbolize the coming mining days.

As evidenced by the blockchain examination, the network has now crossed the 19 million cryptocurrency mark. Mining of the 19 million bitcoins occurred in block 730,000 of the network.

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Nakamoto wanted Bitcoin to be limited

When Satoshi Nakamoto, the mysterious minds behind the cryptocurrency, built the Bitcoin network, the inventor set the maximum supply to 21 million, and the study puts the amount below 21 million.

Some estimates claim that there will only be 20,999,817.31 units of cryptocurrency.

Many members of the BTC community were eager to pay tribute to this historic achievement on Friday, highlighting the significance of the event.

Other members of the Twitter community have pointed out the idea that it will take the next 100 years to mine the remaining digits of the coin.

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So, what happens to Bitcoin once all 21 million are mined?

One of the most distinguishing characteristics of cryptocurrencies is the limited supply.

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Nakamoto developed the cryptocurrency primarily as a form of digital gold and capped the overall supply of BTC to replicate the limited, in physical terms, of the precious metal.

Many cryptocurrencies have a cap on the total number of tokens that can be produced during their lifetime.

This is done for a number of reasons, including keeping inflation at bay, producing artificial scarcity, manipulating prices, and enhancing the attractiveness of the token.

BTC total market cap at $865.60 billion on the weekend chart | Source: TradingView.com

Rarity means buying frenzy

With the number of new bitcoins being issued per block every four years, dropping by half, experts predict that by the year 2140, all remaining bitcoins will be fully mined.

When the cryptocurrency was created, the amount of new BTCs generated per block was 50, but it has since fallen to 6.25 as of May 2020.

Due to the limited availability of Bitcoin, it could become a more valuable item. The scarcity of crypto assets will almost certainly lead to a buying frenzy.

With the emergence of FOMO, the price of BTC will rise rapidly due to the high demand for the cryptocurrency.

According to Chainalysis, a blockchain analytics company, a fifth of all bitcoins have been mined.

Many bitcoins are stored in wallets that are no longer accessible due to forgotten passwords or physical hardware damage.

The Amazing Million Dollar Price Card

Additionally, the crypto industry has predicted that the resulting bitcoin scarcity will help drive up the asset’s price, with some anticipating a base price of $1 million – or even higher.

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Many feel that the asset could become a global reserve asset, accelerating its adoption.

BTC mining difficulty reaches

Meanwhile, just as miners helped issue 19 million bitcoins on Friday, the difficulty of mining the BTC network increased to an all-time high of 28.587 trillion.

The difficulty of the Bitcoin network is proportional to the processing power needed to mine BTC blocks, which currently requires a hash rate of 201.84 EH/s, data from Blockchain.com shows.

Featured image from TechStory, chart from TradingView.com

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