- Bitcoin reaches 19.8M mined units, leaving fewer than 1.2M coins to hit its 21M cap.
- Fixed supply and halving cycles drive Bitcoin’s scarcity, shaping its long-term value.
- Virgin bitcoins gain rarity as new emissions slow, enhancing their desirability and value.
On Christmas Eve 2024, Bitcoin achieved a notable milestone by reaching 19.8 million mined units. This leaves fewer than 1.2 million bitcoins left to be mined before the total supply cap of 21 million is reached. This event marks a key point in Bitcoin’s journey, with the remaining coins expected to be mined over the next century or more.
Bitcoin’s Emission Schedule and the 2140 Supply End
With Bitcoin’s emission schedule, the final fraction of its supply won’t be unlocked until 2140, making this the last era of Bitcoin’s inflationary phase. The question now arises: Will the supply cap be removed, and if so, what would that mean for Bitcoin’s future?
Bitcoin’s supply model is designed to be deflationary, with its total supply capped at 21 million coins. The emission rate, or the amount of new bitcoins mined, drops by 50% roughly every four years in an event known as the “halving.”
After the 2024 halving, miners are rewarded with 3.25 BTC per block. This will continue until 2140 when rewards will be so small that they will fall below a single Satoshi, the smallest unit of Bitcoin. At that point, the emission of new bitcoins will effectively cease.
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Bitcoin’s fixed supply is often hailed as a safeguard against inflation. Unlike traditional fiat currencies, which can be printed at will by governments, Bitcoin’s scarcity is hard-coded into its protocol. As the number of mined bitcoins nears its limit, the value of each unit could rise, driven by increasing demand and shrinking supply. However, the question of whether this fixed supply could be altered has recently sparked debate.
In December 2024, BlackRock released an educational video on Bitcoin, discussing the possibility of removing the supply cap. While such a change is not impossible, it would require a significant shift in Bitcoin’s protocol. Historically, the Bitcoin network has undergone hard forks to introduce changes, so it is technically feasible.
However, many argue that altering the supply cap would fundamentally change Bitcoin’s nature, transforming it into a different asset altogether. Critics believe that those who want an inflationary Bitcoin can simply use other cryptos, while supporters of the fixed supply view may continue to use Bitcoin in its original form.
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In addition to the issue of the supply cap, another fascinating aspect of Bitcoin is the concept of “virgin bitcoins.” These are coins that have never been used in a transaction and have a pristine transaction history.
As the supply of new bitcoins dwindles, virgin bitcoins will become increasingly rare, adding an extra layer of value to these untouched coins. These bitcoins can only be obtained directly from miners through peer-to-peer transactions, further enhancing their rarity and desirability.
Bitcoin’s Supply Dynamics and Its Impact on Value
At press time, Bitcoin is trading at $95,614.67 with a market cap of over $1.8 trillion. With a circulating supply of 19.8 million coins, the countdown to the final 1.2 million bitcoins has begun. However, as more bitcoins become lost or unspendable, the actual number in circulation will always be lower than the maximum supply, making the scarcity even more pronounced. Hence, Bitcoin’s unique supply dynamics continue to be a key factor in its appeal to investors and traders alike.
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