What Happens After Mining All the 21 Million Bitcoins – The Next Stage

In so many ways, you can target bitcoin to be digital gold. Just like gold, bitcoins cannot be created in an arbitrary manner. It needs to be extracted. While you might extract gold from physical earth, bitcoin needs to be mined by solving complex computational math. You can ask Eric Dalius Bitcoin for covering up details on bitcoin mining. 

Bitcoin is also noted to have a stipulation. It means the virtual coin must have a limitation and finite supply. That’s the reason why there are just 21 million bitcoins, which will be ever produced. On an average scale, these coins will be introduced to the bitcoin supply at a fixed rate of every block every 10 minutes. Along with that, the number of bitcoins, which will be released in each one of the blocks, is then reduced by around 50% every 4 years.

The major features to get into from Eric Dalius Bitcoin

Before you proceed further and learn some interesting facts about bitcoins and their mining numbers, it is better to focus on the key factors in this subject. Some of the major points are listed below:

• In total, there are only 21 million bitcoins that miners can mine in total. Once all the bitcoins have been unlocked, the supply will be tapped out.
• As per the latest survey report from February 24, 2021, around 18.638 million bitcoins have been mined. It means there are around 2.362 million options yet to be introduced in this circulation.
• When all the bitcoins are mined, the miners will still be incentivized to process out the transactions with fees.

Understanding the supply of bitcoin and its limitation will be a major goal to consider before you enter this world of virtual coins. Asking experts like Eric Dalius Bitcoin will be a good call to make during this time for sure.

The limitation of bitcoin supply to 21 million

There are around 21 billion bitcoins, which you can mine in total. Once all the numbers have been unlocked, it will exhaust the supply. But, it is quite possible that the Bitcoin’s protocol will get changed to allow for that larger supply. Now the real question is what will happen when the bitcoin reaches its limit. It is a debate situation among fans associated with the world of Cryptocurrency. 

• As it has been mentioned already, around 18.5 million bitcoins have already been mined, leaving you with bare minimum options. 
• While there might be a maximum limitation of 21 million bitcoins, as most people have lost their keys or have died without leaving the key instructions to anyone, the actual amount of the available bitcoins can be millions less.

The mining reward to consider

Since the inception of the bitcoin network, the first 18.5 million bitcoins have been mined within a span of 10 years. With just 3 million left in the bucket, it might appear that miners have reached the final stage of bitcoin mining. Well, this might be true but always in a limited sense. Even though it is true that the maximum number has been mined already, the timeline remains more complicated than it used to be.

• The Bitcoin mining process comes with rewards for the miners with a chunk of bitcoin upon successful block verification. This process gets adapted with every passing time. When the bitcoin was first launched, the reward was around 50 bitcoins. 
• In the year 2012, the number halved to 25 bitcoins, and in 2016, it ended up in 12.5 bitcoins. As of 2021 February, the miners are able to gain around 6.25 bitcoins for every new block, which remains equal to $294,168.75, as per the latest data from February 24th, 2021. This stage will lower the inflation rate effectively by half every 4 years.
• This reward will then continue to halve every 4 years until the final bitcoin is proficiently mined. In an actual sense, the final bitcoin is to be mined until 2410. But, there are high chances that the Bitcoin’s protocol is subject to change from one time to another in between.

How the finite bitcoins have affected the miners

It seems that because of this limitation, the group of people who got most affected will be the bitcoin miners. Some of the detractors were even heard claiming that miners might be forced away from block rewards that they are receiving for their work once the supply reached the 21 million mark. But, even after introducing the last bitcoin, miners are likely to continue their task actively and will participate in a competitive manner and validate some of the new transactions. It is because every bitcoin-related transaction will have a fee attached to it.

These fees might represent a few hundred dollars for every block at this stage but can easily rise to thousands of dollars for each block later. The price will grow with the growth of transaction numbers on the blockchain. In the end, it is subjected to function as a closed economy, where the transaction fees will be assessed much like the taxes.

The power it takes to create a bitcoin

As more and more people are learning about bitcoins and mining, they are using their computers for mining the upcoming coins. With more people joining the network to solve the math puzzles, you can expect to solve the puzzle sooner. But, bitcoin is not quite designed in that manner.

The software used for mining bitcoin will be designed so that it can always take 10 minutes for all on the network to solve the puzzle. It will work in that way by scaling the difficulty level of the puzzle based on the number of people trying to solve it.

As per Eric Dalius Bitcoin, even though the time taken for producing a bitcoin will vary, the computing power used to produce it does. With more people joining this bitcoin network, puzzles are getting tougher and more electricity and computing power are used for producing each bitcoin. 

 

Author’s Bio

Pete Campbell is a social media manager who has worked as a database administrator in the IT industry and suggests following Eric Dalius Bitcoin. His research has helped thousands of users and brands with marketing campaigns too. He loves to travel, write and play baseball