17 Million Bitcoin has Been Mined: What this Means and Why it’s Important to Understand
Bitcoin was created in a way that a limited number of coins would be available for mining in order to create demand and also to ensure that the coins do not flood the market thus losing value. However, Bitcoin’s limited supply is likely to get a bit more limited.
While barring an unforeseen event 17 million Bitcoin is likely to be mined in a day according to data from Blockchain.info. This development would lead to another milestone in Bitcoin because as per the current rules governing Bitcoin only 21 million Bitcoin can be created. Looking back the first million bitcoin mark was reached mid-2016, and it’s worth knowing that the technology is a core computer science achievement- digital scarcity which was created and enabled by the shared software.
In short since the launch of Bitcoin, its code which was adopted by scores and other upstart digital currencies makes sure that only a specific number of coins are introduced to the economy in a specific order and in intervals. All the miners and the people operating the hardware which tracks Bitcoin transactions are rewarded with the scares data each time they put new entries to the record.
What should be understood is that it can’t be predicted when the 17 million Bitcoins will all be mined or even who will mine them because of the variances that are created in keeping a common software in Sync. Even with all these data, there is a relative way to predict. This is because it’s known that each block produces 12.5 new Bitcoins and these blocks appear after 10 minutes meaning that about 1,800 new Bitcoin can be created in a day.
Sunnarborg stressed that the best way to interpret the result is that 80 percent of all Bitcoin to be mined has already been mined meaning that only 20 percent is left for miners and all the future buyers. Other people look at the technology as being ripe for appreciation of this technology and the achievements it has come with.
According to investor Tim Draper:
“I am sure even the inventors of Bitcoin did not imagine how Bitcoin was going to be this important.”
The achievement has been viewed I a way that unless people who operate computers which run the Bitcoin software decide to change its running, there is no way to ever introduce new Bitcoin to the world. This is a great achievement and has played a very important role in Bitcoin’s association with money, scarcity, economics and other naturally occurring assets. It means that there is a little change that there would be inflation of Bitcoin like it happens with fiat currencies issued by central banks because Bitcoin was created through a network supported by Blockchain.
Bitcoin Supply Curve
The rewarding of participants keep on changing every time. This started in January 2009 when Satoshi Nakamoto mined the first block and created the first 50 Bitcoins. The reward did not change for the next 109,999 Bitcoins which was termed as the first halvening or in simpler terms the block reward reducing by 50 percent. This means that in every 210,000 blocks the reward reduced by 50 percent. The most recent halvening happened in 2016, and now the reward is 12.5 Bitcoin.
This means that about 4 million Bitcoin is remaining when it comes to mining which also means that the final supply will not happen in 9 years as it has happened so far. This is because of the halvening which slows the rate of supply growth as well as monetary inflation.
Having in mind or even assuming that the Protocol will remain the same where a new block appears after every 10 minutes and also considering the halving schedule and also when the supply cap does not change, then the last new Bitcoin will be mined in May 2140 which is more than 100 years from now.
With that in mind, it means that Bitcoin is programmed to run for a long time. Also, the fact that Bitcoin is also divisible makes everything better because even the smallest part of a Bitcoin can hold an infinite value.
Jameson Lopp, an infrastructure engineer at Casa wallet providers, noted that: “Even though 17 million Bitcoin looks much it’s not enough for every millionaire to hold one. The beauty is that every Bitcoin is divisible into 100 million Satoshis which means that it will be always plenty.
It’s also likely that Bitcoin will never reach the 21 million units because of its protocol which means the total supply will continue to reduce. However, even if all the 21 million coins were mined Bitcoin would not stop running.