Today it is going to be a big day for the Bitcoin holders and Bitcoin enthusiasts. It looks like Bitcoin is going to see its 18 millionth coin today. This will leave the remaining coin to just 3 million. This is definitely a great achievement and another great thing is the digital scarcity it has. The history of Bitcoin started a little over a decade from now.
When the concept of blockchain was first introduced by Satoshi Nakamoto, Bitcoin was the first cryptocurrency. He was the one who decided that we will be able to mine only 21 million bitcoins and nothing more than that. Though it was hardwired that way, it can even be changed if the network participants decide it that way. That’s a separate story and I’m not going to touch base about that in this article. I also don’t see a big possibility for that to happen or maybe it might happen in a distant future who knows.
With the increasing difficulty and the rate in which the coins are mined, it is expected that the complete mining of all the remaining Bitcoin would take till 2140 which is when no one of us will be alive to watch that. As we all know as and when new coins are mined, the difficulty of future mining increases. 2140 is the estimated year of completion for the remaining 3,000,000 Bitcoins. We also have to note something that people will start moving away from Bitcoin mining gradually when the difficulty increases. The reason is that the mining operation can become a costly operation.
There is another topic that is going to be interesting for us in the Bitcoin world, it is Bitcoin Halving. This is expected to happen in the year 2020. With the current hash rate, people expect to halve to happen in the month of May next year. Halving is an interesting topic because it reduces the supply and the inflation rate. I’m not sure if this will increase the demand though because there are several parameters that will have to decide that.
Some experts think that Bitcoin investment is a great opportunity now before the halving because there is a possibility that the price can again pump next year. But we cannot be completely sure about that because there are also people who are trying to dump some of their holdings. When we say that the number of coins is finite, it also increases the scarcity of the substance. When scarcity increases supply reduces. When supply reduces the demand will increase. This is how it works for any cryptocurrency or even any product.
There are also some Bitcoins that disappear from the world which defines how many coins are available. Though we will not be able to determine the exact number of such disappearance, I have heard instances where people save it in a hardware wallet and have destroyed their hardware wallets. I even read an article where a person shared his experience mining bitcoins during the early years and threw his hard disk to trash which had more than 1000 bitcoins in it. The events happening around Bitcoin world will also impact other altcoins because it is all dependent in one way or the other. Let’s hope for the best.
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