21 million bitcoins

There will only ever be 21 millions bitcoins, a fundamental part of the bitcoin code. No more can be created, a major difference to the fiat world where governments and central banks create more at will with the detrimental effect of reducing purchasing power of hard-working citizens. Currently 18,785,675 bitcoins are in the global network, that is they have been mined and are, or once were in circulation. That leaves 2,214,325 bitcoins left to be mined and it is currently estimated that the last bitcoin will be mined around the year 2140. After the May 2020 halving, the rate of bitcoins released into circulation is 6.25 per block reward, which is roughly every 10 minutes. So, at that rate, around 900 bitcoins are issued to miners every day until the next halving in March 2024 which will then see the rate reduced to 3.125 bitcoins as the block reward. Of the 18.7M BTC, a rough estimate of about 4 million bitcoins are lost. The term lost really means inaccessible, that is bitcoins have been sent to incorrect addresses or people have lost hard drives that stored their bitcoin wallets. Unfortunately for those that have cumulatively lost that 4 million bitcoin, they cannot be recovered back into circulation. Fortunately for everyone else that hodl bitcoin, it further increases its scarcity and over time as demand increases, so will the price. The miners are rewarded with bitcoin for securing the transactions on the network, so after each halving they receive less bitcoin for the same amount of work, however as previous halving cycles have shown there is a much higher price per bitcoin, so the miners are receiving good compensation for their work. So what will happen when we reach the year 2140 and there is no more bitcoin as rewards for the miners? They will receive fee revenue for securing the network. When bitcoin is sent to another user there is a fee to do so. The fee is small but there will be such large volumes of transactions that it will still add up to a good source of revenue for the miners. As this digital scarcity event unfolds, more and more Australians are seeing the opportunity with bitcoin superannuation as a way to secure bitcoin as a long-term investment.

Bitcoin mining

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