• Blog
  • News
  • How Hard To Get 21 Million When 18 Million Bitcoins Already Mined?
News

How Hard To Get 21 Million When 18 Million Bitcoins Already Mined?

In some hours, the 18 millionth bitcoin will be mined and the first cryptocurrency in this world will make one more step towards its desired limit of 21 million coins.

“The pie is shriveling. This important stage allows people to count some simple mathematics to increase conversance about where we are at in the bitcoin mining process,” said CEO of bitcoin rewards platform Lolli, Alex Adelman, also noted:

“People should see the progress of bitcoin, to look back on everything that has been created and will be implemented for the next 3 million. … You should be attentive during the next 3 million.”

But there is no reason to disturb, you’ll have 120 years to watch.

The next 3 million bitcoins will be sluggisher to mine because lock half of reward which happens every 210,000 blocks (or approximately every four years) and decrease new bitcoin offer for 50 percent. 2140 is expected to be a year when final bitcoin will be mined.

Lets to consider?

It seems sacrilegious even to be in direction there and count bitcoin’s value proposition as digital gold. But opponents forecast a day when the 21 million cap could, gasp, come up for debate.

Finally, after there are no more bitcoins left to mint, miners will be living only due to transaction fees, which users will pay to transfer coins via blockchain. This modification gives cause for worrying to some who view bitcoin’s block subsidies as inherent to bitcoin’s promotion system.

This can undermine the structure that motivates miners to record confirmed transactions in the ledger, to the mind of skeptics.

“All of your guess-work about risk, incentives, and cost go out the window,” said a research fellow at the University College London Centre for Blockchain Technologies, Angela Walch. “Please take the pink glasses off and cease supposing that everything will still function well at the moment everything goes to a clear transaction-fees system as opposed to the subsidy.”

Presently, miners get a subsidy of 12.5 newly created BTC, worth roughly $99,370, with each block, plus any further transaction fees, which normally no more than 1 BTC.

A global innovation leader for audit firm Ernst & Young, Paul Brody, also added that a shortened supply of bitcoin can limit the cryptocurrency’s usefulness as a global standby currency.

Mentioning the situations such as the Great Recession where monetary policy interferences were needed to take away the U.S. out of economic turmoil, Brody marked:

“If bitcoin were to become a visible part of the global monetary system, we would have to address the hard supply cap because many economists agree that deflationary systems are not the best solution.”

What will be further?

What if Walch’s and Brody’s suggestion that bitcoin’s 21 million supply cap about changing, will come true?

“We should accept that the 21 million is eligible,” said Walch. “If people make a decision about changing that supply cap for some reason and enough amount of people make that decision, the system will be directed to it. It’s desire, not reality.”

Actually, bitcoin’s code has long been operated by a community that support retaining the coin’s original characteristics as created by Satoshi Nakamoto.

The bitcoin community has gone through ferocious governance debates – such as the infamous scaling discussions of 2017, which were about the potential increase to bitcoin’s block size. As a result of that philosophical controversy, in August 2017, there was created a bitcoin cash.

“Bitcoin should not to stay at that 21 million hard limits,” said EY’s Brody. “There is a governance mechanism to permit changes in bitcoin – if the community accepts it that would be effective.”

Another point of view

Despite it, bitcoin advocate Andreas Antonopoulos emphasized that drama about bitcoin’s supply cap is nothing to lose control – moreover since bitcoin’s conversion to a purely transaction-fee rewards model will take about 120 years.

Antonopoulos marked that from the beginning of bitcoin in 2009, mining was always “a profitable business”, which never aimed to be constant and without changes.

“Mining rewards adjust based on the network. … It’s complicated enough economic environment. It’s not as easy as people suppose,” said Antonopoulos, noted:

“There is a great amount of variables that define miner profitableness right now including bitcoin price, the block subsidy, the transaction fees at the time, the cost of electricity, their access to bandwidth transaction, their local currency exchange rate, the type of equipment and how much profitable it is at transforming electricity into mining.”

Concerns about a transition from a block subsidy to clear transaction-based block rewards are grossly exaggerated.

”It’s a very predictable and gradual change that happens over a period of 120 years. It’s already occurring and every day when miners make their decisions.”, said Antonopoulos.

The next upcoming milestone – 21th million bitcoin may be the best reminder of the ongoing reality of a cap on bitcoin’s horizon.

Venture capitalist William Mougayar, viewing the next bitcoin halving as a far more significant event in bitcoin’s area, said:

“To my mind, the 18 million milestones are not that significant in relation to the next halving which happens May 2020. … That time, the block subsidy will go from 12.5 BTC to 6.25 BTC.”