Bitcoin passed an important milestone on Monday by hitting 90% of the total mineable supply as 18.9 million out of a maximum of 21 million bitcoin were mined & are circulated in various exchanges.
Recent data shows that remaining amount of mineable Bitcoin is 2.1 million or 10% of the total supply.
Bitcoin mining is an energy-intensive process for the computing power needed to generate new units.
Satoshi Nakamoto, the mysterious creator of Bitcoin, programmed the mining algorithm to halve the rate of Bitcoin creation rate by half for every 210,000 blocks mined or roughly every 4 years. In short, halving means that Bitcoin’s mining speed needs to be reduced over time.
The total supply of Bitcoin in circulation is capped at 21 million units by its creator.
Miners were paid 50 Bitcoins per block when cryptocurrency was founded in 2009, but halving in 2016 reduced the incentive to 12.5 Bitcoin per block and then to 6.25 Bitcoin in May 2020. The next halving, expect-ed in 2024, will drop the incentive to 3,125 Bitcoins.
It took 12 years to mine 18.9 million Bitcoins, but the remaining 2.1 million will take until 2140 according to estimates based on mining activities & halving schedules. But 119 years have left may not be enough to make your grandchildren as rich as Scrooge McDuck, as 1/3 of all Bitcoin is already owned by 10,000 people.
“Bitcoin has reached a historic milestone, as 90% of the maximum 21 million bitcoins have been mined into supply. Bitcoin’s scarcity is one of its most interesting aspects as an investment, That’s what many people, institutions & governments are starting to catch-on-to. I think the Bitcoin shortage will cause a shock in the supply of bitcoin to help it over-take gold market cap over the next 10 years, which is around $10 trillion, ”said Marcus Sotiriou, an analyst, at UK digital asset broker Global Block, reported The Independent.
While Bitcoin fights to return more than $50,000 after the third dip in 2021, the forecast of Sotiriou sees 1 Bitcoin at $500,000.
Bitcoin struggle increases by $50,000 due to various factors, but long-term estimates are still remain positive.
The price of bitcoin is $47,560, about 30% below of its all-time high of $68,789.63.