Bitcoin is the first asset in history to have absolute mathematical scarcity. This scarcity is regulated by algorithms in the Bitcoin source code. So When will all the Bitcoins be mined and what can be happened after that? If you do not know yet, read the article below.
When will all bitcoins be mined ?
People are concerned about when all bitcoins will be mined because it will change the dynamics of the cryptocurrency dramatically. From the outside, we appear to be very close to achieving this milestone. At the time of writing, over 19 million BTC has been mined, representing 90% of the maximum supply.
But most likely you won't see the last bitcoin mined. It is estimated that the final coin will hit the market in 2140, which is 115 years from now.
What can be happened after that?
The algorithm that governs Bitcoin is set up so that every 10 minutes a new block is added to the Bitcoin blockchain, and the miner who validates and adds the block gets a block reward. The current block reward is 6.25 bitcoins per block, which means 900 bitcoins are added every day. After 210,000 blocks, the reward is halved, known as the "halving" event. The impact of a halving event is huge, as miners immediately lose half of their revenue from block rewards. When Bitcoin was first released, the block reward was 50 Bitcoins per block, but at the time these rewards were significantly less valuable as Bitcoin’s market price was well below $100.
Since miners' income is negatively impacted every four years, their alternative source of income comes from transaction fees charged when Bitcoin blocks are added. If a person wants to send bitcoin to someone, they have to pay a transaction fee for it, which is paid directly to the bitcoin miner. Today, transaction fees do not account for much of a miner’s income.
In fact, based on current rates, the average miner can only earn about 0.14 BTC per block. Taking into account current market prices, this means that miners earn about $4,000 per block or $576,000 per day. Today, this number is low compared to the nearly trillion dollar value that Bitcoin protects in the network, but as the ecosystem grows, we can expect the value of transaction fees to increase.
According to the current timeline, all bitcoins will be mined and circulated by 2140, leaving considerable time for the network to develop and become more global. In 2140, all miners' income will be tied to transaction fees on the network. While there is no guarantee that transaction fees will permanently supplement current block rewards, many Bitcoin enthusiasts believe that significant growth and growth in users will drive increased miner revenue.
I hope this article will help you to learn when will all bitcoin be mined and what can be happened after that. As of January 2022, 18.9 million bitcoins have been mined, and about 2.1 million bitcoins have yet to be released. The total Bitcoin supply is capped at 21 million.
