Thousands of cryptocurrencies have emerged in the past few years, but Bitcoin is still the most interesting and dominant coin since 2009. Bitcoin was developed in 2009, and today it has been around 12 years of its existence in the fintech industry. Many individuals, businesses and institutions have already started exploring bitcoin and its unique and innovative features. It is a digital asset, and some people even compare bitcoin with a leading commodity, i.e., gold, because bitcoin and gold have many similar properties and features. For instance, both assets can be used for monetary exchange and have a good store of value. Even both of these assets are alternative investment assets.
Bitcoin and gold run in distinct processes, but both can be easily verified. Amongst all the notable similarities, they both have limited supply, and both can only be acquired through the mining process. Visit the Bitcoin Trading App of Push Money and download the app to trade bitcoin as it is a great way to make money with bitcoin.
Let’s have a look at bitcoin mining and learn what it is exactly.
As of now, you know that both gold and bitcoin are assets, and the mining process acquires both, but gold and precious metals can be obtained by digging underground, whereas bitcoins are mined digitally. The bitcoin mining process is done by individuals known as bitcoin miners. Miners are the ones who secure the bitcoin network and process all the transactions using software and high-powered equipment that are designed specially to run mining systems.
On the other hand, miners of precious metals are required to break rocks to obtain these, but bitcoin miners only require solving mathematical equations to get block rewards in return. Gold and other precious metals are hard materials, whereas bitcoin’s data is stored in blocks that are mined using algorithms developed by the creator of bitcoin, Satoshi Nakamoto.
What is the total supply of Bitcoin?
While there are many similarities between bitcoin and gold, both are scarce assets, which means both have limited supplies. But gold is mined by breaking rocks, and there is no fixed number or limit or gold, but in the case of bitcoin, the supply of bitcoin is fixed. There are only 21 million bitcoins that can ever exist or can be mined or used. Now, you must be thinking, where is there is a fixed limit of bitcoin or why the supply is fixed at 21 million? Well, there is no exact answer to this, but it is said that Satoshi intended the unit price of bitcoin to align them with fiat currencies. Setting the limit of bitcoins also provides them anti-inflationary properties.
If you have invested in cryptocurrency or have seen the updates of crypto space, you must have noticed how bitcoin’s price started from zero and rose to 65,000 USD which is its current high in 2021. One of the main factors behind the increase in the price of bitcoin price is the crypto whales which mean the individuals or group of individuals who hold the majority of bitcoins. Those individuals are known as crypto whales that use the huge amount of crypto investment who manipulate the price of coins, resulting in price fluctuation or volatility.
As already mentioned, bitcoin’s supply is 21 million BTC. The limited supply is the main factor behind fluctuating price of this digital asset. There are around 18.5 BTC that are in circulation, and the remaining 2.5 BTC are left for circulation.
What will happen when the entire supply of bitcoin runs out?
Once miners have generated all bitcoins, there will be no more bitcoins left for the mining process. There will not be additional supply, and it can only be possible if the bitcoin protocol is altered and changes the supply of bitcoin. But bitcoin has been in the limelight for so many years, and there aren’t any plans or news where bitcoin’s market capitalization is increased. The supply of bitcoin is near to its limit, so there can be some possible effects that bitcoin users can face that we will read. Once all bitcoins are mined, miners will no longer be able to get the block rewards as all coins will be generated, and they can only earn bitcoins by charging the transaction fees from users.