Table of Contents:
- Bitcoin Mining
- Bitcoins in Circulation
- Bitcoins Left to Mine
- Last Bitcoin Minting
- Post-Capped Supply Scenario
- Conclusion
- FAQs
Bitcoin Mining
Bitcoin mining involves validating transactions and adding them to the blockchain ledger. Miners use computational power to solve cryptographic puzzles, and the first to solve a puzzle receives Bitcoin as a reward. This process introduces new Bitcoins into circulation.
Key requirements for mining:
- High-performance hardware (ASICs)
- Reliable electricity supply
- Mining pool participation (optional)
👉 Learn more about Bitcoin mining
Bitcoins in Circulation
Satoshi Nakamoto capped Bitcoin's supply at 21 million. As of now, over 18.8 million BTC are in circulation. The fixed supply ensures scarcity and guards against inflation, unlike fiat currencies.
Why scarcity matters:
- Drives long-term value appreciation
- Prevents arbitrary supply manipulation
- Mimics properties of precious metals like gold
Bitcoins Left to Mine
Approximately 2.1 million BTC remain unmined. These are released gradually as block rewards:
- Genesis block reward: 50 BTC (2009)
- Current block reward: 6.25 BTC (post-2020 halving)
- Next halving: 2024 (reducing rewards to 3.125 BTC)
👉 Track Bitcoin's circulating supply
Last Bitcoin Minting
The final Bitcoin is projected to be mined around 2140. Due to the halving mechanism:
- Rewards approach zero asymptotically
- Exact supply may settle slightly below 21 million (e.g., 20,999,999.9769 BTC)
Halving schedule:
| Year | Reward per Block |
|---|---|
| 2009 | 50 BTC |
| 2012 | 25 BTC |
| 2016 | 12.5 BTC |
| 2020 | 6.25 BTC |
| 2024 | 3.125 BTC |
Post-Capped Supply Scenario
When Bitcoin reaches its supply cap:
- Miners will rely solely on transaction fees (currently ~1-2% of revenue)
- Lightning Network may handle microtransactions
- Bitcoin’s role as a store of value could solidify
Potential outcomes:
- Increased focus on Layer 2 solutions
- Higher competition for block space
- Possible protocol upgrades (e.g., fee market adjustments)
Conclusion
Bitcoin’s predictable emission schedule makes it a unique asset. While the final BTC won’t be mined for over a century, understanding its supply dynamics helps investors make informed decisions. Whether mining or trading, prioritize secure platforms and long-term strategies.
FAQs
1. How many Bitcoins are mined daily?
~900 BTC (144 blocks × 6.25 BTC reward).
2. What happens if Bitcoin doesn’t reach 21 million?
The protocol ensures asymptotic convergence; even if slightly less, the economic impact remains identical.
3. Will mining be profitable after 2140?
Yes, miners will earn from transaction fees, which may rise as block rewards diminish.
4. Can the 21 million cap be changed?
Only via consensus-driven protocol updates, which are highly unlikely due to Bitcoin’s decentralized governance.
5. How many Bitcoin halvings remain?
Around 30, with progressively smaller reductions until the ~2140 endpoint.
6. What percentage of Bitcoin is already mined?
Over 89% (as of 2024).