Currently, 18.89 bitcoins have been mined and 90% of the total supply has been accounted for. However, it will take 120 years to mine the remaining 10% of bitcoins.
In less than 13 years since the Bitcoin network saw the light of day, it has reached a significant milestone as 90% of all Bitcoins in existence have been mined. But the remaining 10% is still far away from being exhausted; estimates put the time frame at over 100 years.
90% in 12 Years
Bitcoin’s history began nearly 13 years ago, when its network launched on January 3, 2009. The mysterious architect of the project, Satoshi Nakamoto, mined the first block in the chain, known as the Genesis Block.
Among the critical and most valuable features of Bitcoin is its digital scarcity that comes from the fact that no more than 21 million bitcoins can ever be created.
As per the available data, currently, there is 18,890,000 Bitcoin (BTC) in existence. With each and every halving event, the supply is decreasing, and therefore the cost of buying Bitcoin (BTC) will be more expensive as time passes. However, given the pre-programmed features, it is estimated that Bitcoin (BTC) will hit 21 million by the year 2140.
10% in Nearly 120 Years
The math says that Bitcoin will be fully mined in the middle of the next century. The main reason is that it’s programmed into the system. In short, this is a pre-programmed event occurring every 210,000 blocks, or roughly four years as of now, that cuts the block reward that miners receive in half. In 2009, it was 50 BTC per block. In 2024, it will be reduced to 3.125.
Another important function of bitcoin’s network is the mining difficulty adjustment. Essentially, it’s a process that occurs every two weeks that makes it either more difficult or easier for miners to do their work.
As more and more people try to mine for new bitcoins, the difficulty adjustment will keep the block creation rate steady. This will make it harder for the miners to earn rewards and vice versa.
A valid example of the mining difficulty merits came earlier this year. As China implemented an all-out ban on anything crypto, miners had to close shops and move away.
The hash rate declined in the following months, and the block time was delayed. However, the blockchain went through several consecutive adjustments that made it easier for miners to do their work.
Lost Coins and Digital Scarcity
The total supply of 21 million bitcoins is expected to be mined in the coming centuries, but not all can be accessed because more than three and a half million bitcoins are lost due to misplaced private keys or even death events.
There’s no doubt that Bitcoin mining is an expensive proposition and requires considerable amounts of computing power, however, there are some investors who have been able to generate significant returns without paying too much for their computing power.
The German-born programmer Stefan Thomas is a bitcoin enthusiast. In 2011, he produced an educational video called “What is Bitcoin?” for another bitcoin fan, who sent him 7,002 bitcoins in return.
In the beginning, Thomas didn’t pay much attention to his new holdings. They had a little-to-no value, and he lost the digital keys to the wallet. He is now desperate to find out his password.
It seems like Bitcoin’s value is more tied to the idea of scarcity rather than just being an actual currency. The fact that 17% of the total supply of bitcoin has apparently been lost irrecoverably, means it’s become even more scarce than it was intended to be.
Featured photo source picjumbo.com
