Within 13 years of its existence, 90 percent of the upcoming 21 million bitcoins have already been mined. But now a new report claims that mining the remaining 10% of bitcoin tokens will take 120 years. Currently, there are 18.9 million bitcoin tokens in circulation, leaving 2.1 million to be mined. According to a report from Blockchain.com, the “Bitcoin halving” is the reason why the last 2.1 million bitcoins are estimated to take over a century to become part of circulation.
Bitcoin Halving refers to a pre-programmed event that occurs every 210,000 blocks, in the current state that is approximately four years from today. This process cuts the inflation rate of bitcoin in half and the rate at which new tokens come into circulation.
“Due to the regular halving events, the difficulty of self-adjustment, and other pre-programmed features, it is estimated that this will take a long time and that 21 million bitcoins will be created in 2140,” a report good Citing a Blockchain.com report by CryptoPotato, he said.
The bitcoin halving has also halved the block reward that miners receive. In 2009, this block reward for miners was 50 bitcoins per block. At the moment it has come down to 6.25 bitcoins.
satoshi nakamoto Is the pseudonym of the unknown creator of bitcoin who mined its first token in 2009. At the time of the creation of bitcoin, Nakamoto had decided to limit the supply of bitcoin to 21 million tokens. Today, bitcoin has become the largest cryptocurrency with a market valuation of $922 billion (approximately Rs 70,15,680 crore).
According to CoinMarketCap,39,738,251 crypto wallet holds bitcoin tokens. Of these, 963,625 are active wallets. The top 100 owners hold 13.21 percent of the circulating supply of bitcoin.
Nakamoto also added a mining difficulty adjustment feature to ensure a steady pace of bitcoin production.
“Essentially, this is a process that happens every 2,016 blocks (two weeks), making it either difficult or easy for miners to do their jobs,” the report said.
As block rewards are dwindling and hard adjustments are getting harder to crack, miners will need to put in extra effort for smaller rewards.
Now, despite a total supply of 21 million bitcoins expected to be mined over the next century, not all tokens will reach the open market. So far, more than 3.5 million bitcoins have been “lost” due to incidents of misplaced private keys or even death.