It has reached a milestone in Bitcoin’s supply schedule – 94% of the total Bitcoin supply The mining process has been completed. 1974 BTCs have been mined from a total hard-capped of 21 millions BTC.
Bitcoins are created through mining. This is where computers verify transactions in exchange for Bitcoins. Initial mining subsidies were 50 BTC for each block. This subsidy is halved every 210,000 blocks, or approximately every four years.
This is an event that takes place on the Bitcoin halvingThe resulting inflation is predictable and decreases as supply increases. The subsidy has been cut in half three times, from 50 BTC down to 25 BTC and then to 12.5, which is now 6.25 BTC.
The halvings Over time, fewer bitcoins are created due to increasing competition and difficulty. Since the launch of Bitcoin in 2009, more than 94% (19741,655 BTC) or 21 million BTC were mined.
There are still around 1,26 million BTC left to be distributed. Due to the 6.25 BTC reward for each block, it will be over 100 years before the remainder of the supply is fully minted. According to experts, by the year 2140 99.9% of bitcoins will be mined.
Bitcoin’s unique value proposition relies heavily on this controlled supply schedule. Bitcoin will become more scarce over time as the demand increases and issuance decreases. This is a key feature for investors who are concerned about currency debasement and unlimited printing of fiat currencies.
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Source: bitcoinmagazine.com
