Bitcoin has a total supply of 21 million coins and a quick look at Coinmarketcap’s platform says about 17 million coins are in circulation. Therefore, what happens to Bitcoin after all these coins have been mined? Here’s what you should know, several events may occur even though each is based on speculation. Nonetheless, that’s the intriguing part of the crypto space.
Cryptocurrency miners on a daily basis are mining Bitcoin, a term which denotes the addition of a transaction on the Blockchain. You can compare it to when Gold is mined and the fact that it has a limited supply which will run out one day. Bitcoin, on the other hand, is the digital replica of Gold.
So, what can people expect when the lot has been mined?
A Hike in Price Due to Severe Shortage and High Demand
An asset or commodity that is limited in supply usually sees an increase in price. If the logic works in real life, we can only hope that the same will be applicable to Bitcoin. Fewer coins being added to the market and more people adopting Bitcoin may tend to create a demand which will, in turn, influence its price. By that time, the likes of Satoshi Nakamoto, Bitcoin’s creator may decide to bring out the 1 million Bitcoin they are holding in reserve. Nevertheless, this is not of certainty.
Low Level Interest In Mining
When the 21 million coins have been mined, it can be assumed that interest in these mining activities will reduce. This can be attributed to the high cost of mining the virtual asset in comparison to the price of 1 Bitcoin. JP Morgan, a U.S. bank also pointed out that mining Bitcoin costs more than its price.
Likewise, the few miners that are left may only be interested in the rewards that can be gotten through these mining activities. Nevertheless, there are advancements in technology to look forward to which could bring about mining rigs that are less energy intensive. These machines may even become more affordable thereby making it easier for the average cryptocurrency enthusiast to mine it.
Whichever is the case, many believe that Bitcoin is here to stay especially its underlying technology, the blockchain. The reason why the virtual asset is capped in the first place is to give it value, hence it’s