There are only 2 million units of Bitcoin left to mine — why does it matter?

Bitcoin

Bitcoin passed a historic benchmark on Friday with the issuance of 19 million coins.

This means that there are only 2 million coins left for anyone interested in owning the most sought-after digital asset in the world.

BTC is trading at $46,750 on Coingecko as of early Saturday night, up 5.5% over the past seven days.

According to CryptoVault Chief Executive Officer Kjetil Hov Petersen, while many consider this a small amount, the remaining units may best symbolize the mining days ahead.

As revealed by a blockchain study, the network has now crossed the 19 million cryptocurrency mark. The mining of the 19 millionth BTC took place on block 730,000 of the network.

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Nakamoto wanted Bitcoin to be finite

When Satoshi Nakamoto, the enigmatic brain behind the cryptocurrency, built the Bitcoin network, the inventor set the maximum supply at 21 million and research shows that the amount is less than 21 million.

Some estimates claim that there will be only 20,999,817.31 units of the crypto.

Many members of the BTC community were only too happy to applaud the historic achievement on Friday, highlighting the importance of the event.

Other members of the Twitter community pointed to the idea that mining the remaining numbers of the coin will take the next 100 years.

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So what happens to Bitcoin when all 21 million are mined?

One of the most distinguishing features of the cryptocurrency is its finite supply.

Nakamoto developed the cryptocurrency primarily as a form of digital gold and hedged BTC’s total supply to replicate the finite supply, in physical terms, of the precious metal.

Numerous cryptocurrencies have a limit on the total number of tokens that can be produced during their lifetime.

This is done for a variety of reasons, including keeping inflation at bay, producing artificial scarcity, price manipulation, and increasing the token’s appeal.

Scarcity equals shopping madness

With the number of new bitcoins released per block being cut by half every four years, experts expect all remaining bitcoins to be fully mined by 2140.

When the crypto was founded, the number of new BTCs each block created was 50, but has since fallen to 6.25 as of May 2020.

Due to the limited availability of Bitcoin, it would become a more valuable item. The scarcity of the crypto assets will almost certainly result in a buying frenzy.

And when the fear of missing out (FOMO) kicks in, the price of BTC will rise rapidly due to the high demand for the crypto.

According to Chainalysis, a blockchain analytics firm, a fifth of all Bitcoins mined have been lost.

Countless Bitcoins are stored in wallets that are no longer accessible due to forgotten passwords or destroyed physical hardware.

The vaunted $1 million price tag

In addition, the cryptocurrency industry has predicted that the resulting scarcity of Bitcoin would help increase the asset’s price, with some expecting a base price of $1 million – or even higher.

Many believe that the asset could even become a global reserve asset, accelerating its adoption.

BTC Mining Difficulty Up

Meanwhile, just as miners helped release the 19 millionth BTC on Friday, the mining difficulty of the BTC network rose to an all-time high of 28.587 trillion.

The difficulty of the Bitcoin network is proportional to the processing power required to mine BTC blocks, which currently requires a hash rate of 201.84 exahash per second (EH/s), data from Blockchain.com shows. .

Featured image from TechStory, chart from TradingView.com

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