Bitcoin is a digital asset that has acquired the name of utmost speculative asset gold so when people mine 21 billion bitcoins, what happens next?
The prominent reason behind this name of bitcoin is due to the return of investment alongside the process of generation.
You can generate both bitcoins and gold through mining and extraction.
However, the progression dynamics of bitcoin mining are highly diverse.
Bitcoin mining is nothing like digging deep holes in the land or mines, and it is just a computing process.
Despite the devoid physicality, bitcoin mining is correspondingly as complex as gold mining and extraction.
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They built the complexity of bitcoin in such a way that there is a stipulation in the bitcoin complex.
And merely a limited number of bitcoin one can mine in the entire journey of bitcoin.
The number defined by the originator of bitcoin is 21 million bitcoins.
In the time span of 10 minutes, one mines blocks, and the individual mining the block receives an explicit number of bitcoin.
All the number of bitcoin availed as the mining reward is halved subsequent to every four years.
Quick Overlook
21 Million Bitcoins
As mentioned ahead, the supply of bitcoin is infinite.
Other altcoins subjected to the core notion of bitcoin are not a subject to a finite supply.
Bitcoin is the mere cryptocurrency subjected to a finite supply in total.
The absolute number of bitcoin underlined by the originator of bitcoin is 21 million bitcoins.
There is a considerable concern among the cryptocurrency fans.
The concern is what will happen when the supply of bitcoin reaches the highest number.
The actual number of bitcoin in the cryptocurrency industry is 18.6 million.
The fact might amaze you that out of these 18.6 million bitcoins, people has just lost 4 million bitcoins due to the loss of private keys.
Bitcoin Mining Block Rewards
They released bitcoin in the year 2009.
Since then, it consumed merely a decade to miners for mining more than 18 million bitcoin.
Now there are just 3 million bitcoin units left that a bitcoin miner person can mine.
The end game of bitcoin mining is approaching.
In order to extend the progression of bitcoin mining, the block reward halving event takes place after every four years.
The block reward of the bitcoin mining progression at the very foremost glance was 50 bitcoin.
At that instance, Satoshi Nakamoto mined the foremost block in the bitcoin complex named the genesis block.
According to some robust sources, Satoshi Nakamoto is correspondingly holding 1 million bitcoin units.
The block reward halving took place in the year 2012 at the very foremost place.
And the block reward was declined by 25 bitcoin units, subsequent to the second block reward halving in 2016, the block reward remained 12.5 bitcoin.
And the recent block reward halving in 2020 declined the value of block reward by 6.25 units.
You can estimate the time of the next block reward halving that will occur in the year 2024.
And the block reward at that instance will be reduced by 3.25 bitcoin units.
Decisive Influence of Limited Bitcoin Supply on Bitcoin Miners
A bitcoin miner is any individual contributing resources of power and computer.
They do it in order to integrate the progression of bitcoin transaction verification.
Bitcoin miners are the utmost viable component of the bitcoin complex.
As these individuals verify bitcoin transactions and render information regarding transactions to the blockchain alongside generating bitcoins and adding new flanged bitcoin to the marketplace.
The limited supply of bitcoin will disturb the bitcoin miners to an exceeding extent as in the fourth coming years subsequent to the next block reward halving the route of mining bitcoin will be subjected with an exceeding extent of obstacles.
You might be wondering that after the last bitcoin is mined why these bitcoin miners will sustain the blockchain.
The block reward availed by the bitcoin miners does not merely include the bitcoin units but also transaction cost at the very same time.
The bitcoin miners might continue the verification progression for the transaction fees.
As the transaction fees these bitcoin miners receive are worth hundred dollars at the instance.
Once you mined bitcoins, there will be potential scarcity in the complexity of bitcoin.
Thus, the transaction will skyrocket.
These are some of the influences on the market once someone mines 21 million bitcoins.