The total Bitcoin supply is limited to 21 million coins. This limit is expected to be met around 2140. This limit has been part of the Bitcoin system since its inception. It is also one of its key features, and can be printed by central bankers.
The reward for adding a block to the Bitcoin blockchain is the “block reward”. This is where the miners are rewarded with a set number of Bitcoins. This reward, known as the “block rewards,” is the main way new Bitcoins are introduced to circulation. Block reward was initially 50 bitcoins per block. It is halved after approximately 210,000 blocks (roughly four years). The block reward has been lowered to 6.25 Bitcoins per Block as of December 2021.
The number of Bitcoins available for sale will increase as more blocks are added. After this limit has been reached, no new Bitcoins will be created. New people will only be able to trade or buy existing Bitcoin holders.
While the total number is 21 million, it is possible that a small fraction of these coins may be lost over time. If a Bitcoin wallet owner loses their private keys, or the physical storage medium (e.g. a hard drive) where the wallet is stored is damaged/destroyed, this can occur. According to estimates, the actual number in circulation of Bitcoins will be slightly lower than 21 million.
What happens after all Bitcoins have been mined? The supply of Bitcoins will stop and the demand will drive the price. The price of Bitcoin could rise if there is strong demand. People will compete for a small supply. The price may fall if there is less demand.
There are several key factors that could impact Bitcoin demand once the 21 million coins limit is reached. One is Bitcoin’s adoption as an exchange currency. The demand for Bitcoin could rise if more people use it as a currency to buy and sell goods and services.
Another factor is Bitcoin’s use as a store-of-value. Many people view Bitcoin as a digital asset that can be used to hedge against inflation and diversify their investment portfolio. This could lead to a rise in demand for Bitcoin.
The adoption and development of new technologies may also have an impact on Bitcoin demand. Lightning Network, which is a second-layer solution to scaling Bitcoin, has been widely adopted. This could make it easier to use Bitcoin in everyday transactions and boost demand for the currency.
The 21 million Bitcoin limit, which is a key component of the Bitcoin system, helps to ensure its scarcity as well as value. The supply of Bitcoins will stop once all have been mined. This will cause Bitcoin to lose its value. Demand for Bitcoin could be affected by factors such as its adoption as an exchange currency, its storage value, and the development new technologies.