There are only 2 million bitcoins left in a total offer of 21 million bitcoins. With the allure of where things are going, the BTC has ascended to an even higher level of rarity. Great idea!
Bitcoin (BTC) is becoming increasingly rare
There will never be any more bitcoins since there are only 2 million coins left to be extracted. This is according to Bitbo data, which shows that the 19 millionth bitcoin is about to be mined.
If one considers Satoshi Nakamoto, the father of bitcoin (BTC), the more scarce the cryptomonnaies get, the more valuable they become. Nothing should be regretted about the decades spent conducting research in the field of computer science.
Prior to the launch of Bitcoin, we had to make due with digital currency, which was often hampered by double spending. We had to pay far more fees than we could afford in order to complete transactions. Central authorities have been given permission to track our shipments, receipts, and even the establishment of our soldes, in the same way that traditional financial institutions do.
Fortunately, thanks to the usage of Proof-of-Work in a widely distributed book, Nakamoto was able to find a technique capable of breaking this chain. This allowed for the creation of a favorable scenario for cost-cutting.
Bitcoin mining and millions of bitcoins
Without cooperation between miners and nodes, no bitcoin issuance or application will be effective. To do so, investors who want to understand the rarity of bitcoins must keep in mind the supply restriction for this activity.
It wasn't long ago that miners got into the habit of trading their shattered bitcoins on the American dollar market. As a result, they were able to cover its operating costs. However, things have changed recently: mining companies are no longer hesitant to include extracted tokens in their financial statements. In addition, if necessary, they make bitcoin-guaranteed loans.
As a result, millions of bitcoins are becoming scarce, as the total supply has been set at 21 million since the launch of Bitcoin.
What is the purpose of a group reward?
To further understand the notion of "reward per block," we need to go back to the time when Nakamoto extracted the first 50 BTC block. Because, by the end of that time, all 210 000 blocks had been reduced by half. As a result, a miner may only earn 6,25 BTC every block mined at the moment.
With each passing day, less and fewer new bitcoins are distributed, making millions of BTC even more scarce than before. Sure, it took a good dozen years to extract the 19 million bitcoins, but the final bitcoin will be struck in the year 2140. Unless the protocols change.
It's strange that neither the white paper nor the source code of Nakamoto mention the overall offer limit of 21 million bitcoins. The creator of King of Crypto has instead suggested an evolving reward system for each extracted block. This last, when combined with the decentralized network of computers that will be using this reward, will prevent bitcoins from being issued in excess of the limit.
Jameson Lopp, cofounder and technical director of Cypherpunk and Casa, spoke about it in a blog post. Here's what he said:
« Bitcoin implementations monitor new issuances by ensuring that each new block does not create more than the authorized block subvention. »
A monetary policy that is responsible for the loss of millions of BTC
As a result, we'll have to wait another century to see the supply of 2 million bitcoins deplete. Because Satoshi Nakamoto's calculations called for a two-fold amplification of expenses. Similarly, the block subsidy is designed to not report any more than it should as the program progresses. Indirectly, the Bitcoin distributed network is there for some reason.
Except for one more metric to keep an eye on: the rarity of bitcoin in the digital world. In fact, the BTC has enabled the establishment of a monetary policy that anticipates its end. This is in stark contrast to the current monetary system, in which decision-makers and governments have easy access to increased currency issuance.
As a result, there will be no further depreciation in the value of Bitcoin (BTC). Furthermore, its users will always be assured of the security of their purchasing power.
The icing on the cake is that bitcoin enables future planning because no one is capable of evaluating this activity. It's also worth noting that the evolution of our society is inextricably linked to a strong commitment to long-term investments and work. Exit the paris for a little while!
Despite their scarcity, the last millions of bitcoins sold for between $30,000 and $60,000. This practice of exchanging bitcoin for US dollars might be interpreted as a lack of understanding of the digital currency. For the time being, just a few people have achieved a moderate level of comprehension. However, when bitcoin achieves the effect predicted by this theory of rarity, we may expect a massive increase in wealth.