Bitcoin’s price has been a major talking point, especially with the anticipation of the 2024 halving event. But today, we’re focusing on different numbers – specifically, how many Bitcoins are circulating, how many remain to be mined, and how many might be lost forever.

Let’s break down the numbers and see what they reveal about Bitcoin’s future.

The Total Bitcoin Supply

Bitcoin’s total supply is capped at 21 million coins, a limitation set by its anonymous creator, Satoshi Nakamoto. This cap was designed to introduce scarcity, much like precious metals such as gold, and aims to avoid the inflationary risks seen with fiat currencies. By limiting the supply, Bitcoin aims to preserve its value over time.

This scarcity is central to Bitcoin’s appeal, with the limited supply helping to drive its value upward as demand increases.

How Bitcoin Is Mined

Bitcoin is introduced into circulation through mining, where miners solve complex problems to validate transactions and secure the network. For each block of transactions confirmed, miners are rewarded with newly minted Bitcoins. Initially, the reward for mining a block was 50 BTC, but this reward has halved every four years in an event known as the “Bitcoin halving.”

The halving events help regulate the rate at which new Bitcoins are introduced into circulation, ensuring a steady but slowing increase in the supply until the cap of 21 million is reached.

Bitcoin Halvings

Bitcoin halvings, which occur roughly every four years, reduce the rate at which new Bitcoins are mined. This mechanism will continue until the block reward is reduced to almost nothing, expected around the year 2140. The latest halving occurred on April 19, 2024, dropping the reward to 3.125 Bitcoins per block.

How Many Bitcoins Have Been Mined So Far?

As of the most recent data, over 19 million Bitcoins have already been mined, which is more than 90% of the total supply. While the exact figure fluctuates due to continuous mining activity, it’s clear that we are approaching the limit of new Bitcoins being introduced into circulation.

How Many Bitcoins Are Left to Mine?

Currently, there are just under 2 million Bitcoins left to be mined. It will take approximately 120 years to mine these remaining coins. The slow mining process is due to the halving events, which continue to reduce the number of new Bitcoins rewarded to miners.

Daily Bitcoin Mining Rate

Bitcoin’s daily mining rate depends on the current block reward and the time it takes to mine a block. With the recent halving, the reward is 3.125 Bitcoins per block. On average, a new block is mined every 10 minutes, which means that around 144 blocks are mined each day.

Multiplying the number of blocks by the current block reward gives:

144 blocks * 3.125 BTC = 450 BTC mined per day.

This rate will continue until the next halving in 2028, which will further reduce the block reward.

How Many Bitcoins Have Been Lost?

Despite the high security of the Bitcoin blockchain, many Bitcoins have been lost due to various reasons. Estimates suggest that between 3 and 4 million Bitcoins may be lost forever. These lost coins impact Bitcoin’s circulating supply and contribute to its scarcity.

The most common causes of lost Bitcoins include:

• Lost Wallets: Many early Bitcoin holders lost access to their coins because they misplaced their private keys or lost the devices on which they stored their wallets.
• Inactive Wallets: Bitcoins that have not been moved in years, often from the early days of Bitcoin, are often considered lost.
• Burned Bitcoins: Some Bitcoin is deliberately sent to unspendable addresses, effectively removing it from circulation.

The loss of 3 to 4 million Bitcoins means that 15-20% of all Bitcoins ever mined are no longer accessible. This loss could potentially increase the value of the remaining Bitcoins, contributing to their scarcity.

When Will the Last Bitcoin Be Mined?

The final Bitcoin is projected to be mined around the year 2140. This will occur after many more halving events reduce the mining reward to a fraction of a Bitcoin. As the mining reward diminishes, the issuance of new Bitcoins will slow down, and the last coin will be part of a block with a very small reward.

What Happens When All Bitcoins Are Mined?

Once all 21 million Bitcoins are mined, there will be no more new Bitcoins issued as mining rewards. Instead, miners will be compensated solely through transaction fees, which users pay to prioritize their transactions.

This shift may have several implications:

• End of Mining Rewards: Miners will no longer receive block rewards, only transaction fees.
• Shift to Transaction Fees: These fees will likely become a more significant source of miner income, making up for the loss of block rewards.
• Network Security: Some worry about the long-term security of Bitcoin once mining rewards are gone, but increased transaction fees and network activity may compensate for this.
• Economic Implications: As the supply of Bitcoin becomes fixed, it could lead to higher prices as demand continues to increase, similar to the way gold’s value is preserved due to its scarcity.

The Future of Bitcoin

While Bitcoin’s 21 million coin limit won’t be reached for over a century, its future remains bright. As the network nears its cap, Bitcoin’s scarcity could strengthen its appeal as a deflationary asset, often referred to as “digital gold.” As more financial institutions and individuals integrate Bitcoin into traditional financial systems, its value could continue to rise, even as the number of available coins becomes finite.

In the long run, Bitcoin’s transition from a niche digital asset to a mainstream financial tool will be an exciting development, with its limited supply playing a significant role in shaping its market position.