We all know that around 90 percent of Bitcoin has been mined to today’s date. Only more than one million of the coins are remaining to be mined. It’s been 13 long years to see the coin moving ahead in the set direction. The man known as Satoshi Nakamoto created the coin, and we have seen the supply of the coin going smooth so far. Today, the coin has reached the mark of around 90 percent. And only ten percent is reaming at the moment. We are asking in this article what will happen once the limit of 21 M of Bitcoins is mined. There are many answers to this question. Now, we will ask this big question in the following paragraphs:
Understanding the Bitcoin Supply
We know Satoshi put all his efforts into creativity while bringing the coins to the market. He came up with 21 Million of BTC supply. In this way, he could regulate the number of coins using some protocols and algorithms he set like a source code. The supply has made things scarce for everyone since he hoped to see the coin price high in the coming future. He was right in his assessment of his coin. We now see the mining done more efficiently when every new BTC is added to the wallet every ten minutes. However, the protocol set in the mining platform only allows the pre-defined coins for the miners. These are reducing at a more excellent pace every four years’ interval called halving. So far, 90 percent of the coins are mined. It is close to 19 Million, and experts claim that the rest, 10 percent, will be mined by the end of 120 years.
The impact of miners as per the number of BTC mined.
Miners remain an integral platform in developing the BTC tokens, and they can solve the complex puzzle using cryptographic technology. The Blockchain technology then validates and verifies the right amount of transactions found in the network. For playing their different roles in the network, many more miners are now getting more block rewards. These further help develop a good minted BTC that is further made available with the help of a fee. Unfortunately, one can find too many hurdles coming in the way of miners, and these are offered as a block reward in every halving process.
If you look at the halving process, it all started in 2012, coming out with 25 BTCs and then in 2016 of 12.5 BTC. The last time we heard the halving was in 2020 when we saw around 6.25 BTC in the next block. The mining process engages several complex math-based problems, and the miners have to solve them to get the reward. They need some high-end hardware programs, including GPUs, that further help in giving away a good amount of energy in a big way. The miners are now using the money that can help block the reward using the operational cost of the same and then profit.
However, all these rewards are seen getting halved in four years. The cost of the operation is seen moving ahead with greater rewards for the miners. It can help make the mining process unsustainable, and then the business model works further. The fee you pay for the transaction amount also piles up, and it takes every ten minutes when the mining process is complete. Also, the miners gain block rewards only after the transaction is complete. All these innovations help boost the efficiency involved in the energy needed for the mining process.
The impact on the network
Also, there will be an impact on the network of the coin. The ledger that helps manage the coin’s transaction will also witness the impact. The increase in the transactions will be seen in the coming times in a big way. There is a chance of an increased level of transactions in the coming time. Also, the architecture seen in Bitcoin is seen coming along with greater integrity and accuracy. On reducing the transaction as seen in the BTC network, we see the changes going down for the reserve asset. Looking for more interesting articles about Bitcoin? Here are the things to expect if Bitcoin becomes a country’s currency.
