Bitcoin has gained popularity as an investment in recent years, because of its unique design and underlying technology. Part of what gives Bitcoin value is that it has a limited supply – there will only ever be 21 million bitcoins in existence.
The 21 million Bitcoins are released into the market over time through the process of mining. When the mining process first began, numerous bitcoins were released, and over time, fewer and fewer bitcoins get released.
Let’s dive into the details of how many Bitcoins have been mined year-to-date, how many bitcoins are left (to mine), and why can there only be 21 million bitcoins.
How Many Bitcoins Are Left?
As of August 2022, the majority of Bitcoins have already been mined and are currently in existence. The circulating supply stands at 19.11 million, leaving only 1.89 million bitcoins left to be mined.
How Many Bitcoins Are Mined Each Day?
In the first-half of 2022, approximately 900 Bitcoins were mined each day globally. Every 10 minutes, miners verify one block of bitcoin transactions and the current reward for verifying one block of bitcoin is 6.25 bitcoins. So, approximately 900 bitcoins are released into the market every day.
However, approximately every four years, the reward for mining a block of transactions gets cut in half, in an event called “halving.” The last halving event took place in May 2020, which resulted in the block reward being reduced to 6.25 Bitcoins. It’s because of the halving events that it will take until the year 2140 for all bitcoins to be mined. When bitcoin mining first started, the block reward was 50 BTC per block, but each bitcoin was only worth pennies.
Why Can There Only Be 21 Million Bitcoins?
When Bitcoin’s creator(s) designed its protocol, they decided to create a limited supply of BTC. Limiting the number of bitcoins creates a built-in level of demand and value for Bitcoin. The limit was partially in response to the currency system of the U.S. dollar (USD), which does not have a limited supply. Because the USD is controlled by centralized authorities – like the U.S. Federal Reserve Bank (the Fed) – the Fed can decide to print more money and take other actions that potentially could result in inflation or other economic issues.
If there were an unlimited supply of BTC, it would be difficult for the cryptocurrency to gain any momentum as a valuable asset. Limiting the supply creates demand. Similarly, if all the BTC were mined within just a few years, excitement about Bitcoin might fade quickly. Further, Bitcoin would not have the chance to be built out as an industry or viable currency.
What Will Happen After All the Bitcoins Have Been Mined?
Once Bitcoin mining is finished – possibly in 2140 if mining protocols don’t change – no new bitcoins will be introduced to the market. While miners will still make money in transaction fees, those fees may or may not be enough of an incentive for miners to want or be able to continue their operations.
If transaction fees increase, buyers, and sellers might be discouraged from using Bitcoin. If miners no longer keep the network running, Bitcoin could collapse completely, or it could shift to being run by a centralized entity.
Some have argued that Bitcoin’s supply cap will come up for debate during the next 100 years, or after 2140. If Bitcoin does become an important part of the global economic system, the limit of 21 million coins could become problematic.
Moreover, other parts of the Bitcoin blockchain likely would change in the coming decades, as they already have before. There could be changes to processing times, transaction fees, hard forks, and other elements of the protocol. It’s possible that Bitcoin could function entirely differently in 100 years; that it would have disappeared entirely by then; or that it would still be functioning the same way it is today.
Can Bitcoin’s Supply Limit Be Changed?
No, and the main reason for that is because this provision is built into Bitcoin’s architecture, into its community governance rules, and its incentive system for miners. The hard cap of 21 million BTC has a positive effect, as it increases the coins’ scarcity, which in turn raises their value.
When a product’s supply is said to have “absolute scarcity,” it means that the product’s supply is finite; no matter how much demand there is for it, no one can produce more. It’s stipulated as part of a cryptocurrency’s charter. The only output value that can change is Bitcoin’s. No matter how much energy is spent mining BTC, its maximum amount will always be 21 million.
And the only way to circumvent this is for a crypto to completely reinvent itself, creating new rules and new mining incentives.
Closing Thoughts
Now that you know approximately how many Bitcoins are left and why can there only be 21 million bitcoins, we can safely assume that the future of Bitcoin will continue to attract stakeholders even when the total Bitcoin supply is reached given its popularity.
Reaching the maximum number of Bitcoins won’t create a doomsday scenario unless Bitcoin loses its demand and traction. In a likely scenario, the Bitcoin ecosystem will continue to adapt to the changing patterns in the global economy, giving it a stable outlook for the future.
