Bitcoin is an old cryptocurrency that came into existence in 2009 by Satoshi Nakamoto. The real identity of the inventor is still a mystery. There are millions of investors of BTC who have traded their assets for many years. When Satoshi launched Bitcoin, he set the limit of mining this digital currency, i.e., 21 million. The hidden reason to do so is the limited cryptocurrency supply. It will help in making the price of the virtual asset steady for many years.
With time, many coins have been mined, and a small limit is left so far. But is there any limit on BTC mining in actuality? In the following write-up, you will get all the answers to your queries. You can visit this site to know how crypto affiliate marketing works. The crypto mining process seems to be quite complicated. It is necessary to understand various aspects of this process and determine whether there is any limit.
Bitcoin That is Mined Already
If we calculate the Bitcoins approximately that have been mined, it is approx. 18 million. It means that approx. 83% of BTC have been mined. Those coins are already circulating and hence, are existing across the globe. If we calculate the entire BTC circulation around the world, it is roughly $865 billion.
The Time When All the BTC Will Get Mined
The left 3% of coins are left to get mined which is possible in the next decade. There is a possibility that it will get extinct in the future. Therefore, the mining process has become slow. It is also known as halving. The fixed rate of BTC is in every 10 minutes, one block is mined. But due to halving, there is a reduction of coin mining by 50 percent in four years.
Is There Any Benefit of Limit to Bitcoin?
There is a standard concept of the economics behind the BTC limited supply. If any commodity is rarely available, the price or value will be high when in demand. As the mining limit of BTC is approx. 21 million, the price will go up because more investors want to invest their money in this digital asset.
Due to the increasing demand and limited supply, the investors will have to spend more money to own BTC. If we compare it with the fiat currency, there are no such strict limits by the government. It is easy for any country’s government to print notes and manufacture coins for the public. But still, there is a limit to print those notes because beyond the limit can cause a high level of inflation.
The Evolvement of Bitcoin Through Many Years
Undoubtedly, there was a massive hike in the price of Bitcoin in the last decade. Many economists are researching the limit of the mining process. When BTC launched in 2009, it was easy to mine 50 BTC from one block. The value was too less that a person could buy two pizzas in exchange for 10000 coins.
After four years of successful launching of this digital asset, the initial halving happened. Now, one block could yield only 25 BTC. The value suddenly went up by the end of 2013. In 2016, the second halving happened, and it continued in another four years. According to recent research, one block can yield only 6.25 BTC in 2020. Now, it is relatively quite challenging to mine Bitcoin due to its strict limit.
Is It Possible to Change the Limit?
Theoretically, it is possible to change the mining limit. But it is necessary to have many BTC participants who can agree to accept the low price of the coin for the asset they hold. It is relatively challenging to gather such participants.
Therefore, it is an unrealistic assumption as many investors will lose their profit if they do so. Their investment in Bitcoin will get wasted. There are plenty of Bitcoin investors across the globe. They cannot agree to afford their loss because they have been investing for many years. When the time has come to get profit, they cannot turn their backs.
About Mining Rewards
Many BTC investors know that there is around 3 million Bitcoins are left to be mined. Due to the strict limit, it is a massive challenge to mine the coins. The process takes a lot of time, resources, and effort. On every successful validation of a single block, the miners get rewards.
When this digital currency was launched in the market, the reward was 50 BTC. But things got changed after every 4 years. The coin reward becomes half every 4 years because of its limit. As per the assumption, the final BTC will be mined in 2140. There is a possibility of a change in the network to exceed the limit.
The Limit Impact on BTC Miners
Many Bitcoin miners get affected by the limited supply. Many miners do not get the rewards even after the successful mining process. Even a miner does not get any reward, he has to participate in the production of the coins. He needs to invest his time, effort, and resources until the production of the final BTC.
On every transaction, there is a fee, and it has to be paid by the miner. The fees are too high to afford for every miner. If there is an increase in the number of transactions, the value of the BTC will also increase. The entire process will work in a secure economy, where the fees will be counted as taxes.
The Bottom Line
The limit of 21 million on BTC mining exists, in which only 3 million coins are left to be mined. The limit can change, but there is an unrealistic process to do it. The limit has introduced many challenges for the miners because they have to do their jobs without getting any reward in return. The price of Bitcoin is also increasing because of high demand and limited supply.