After 12 years, 90% of all bitcoins have already been mined

Photo Credits : Pierre Borthiry/Unsplash

This Monday, data from the blockchain showed that bitcoin miners exceeded the “round” figure of 18.9 million created bitcoins, which means that only 10% of mining remains.

The process of verifying transactions on the blockchain, also known as mining, brings certain monetary benefits to those who perform it. Miners are allocated a certain amount of bitcoin for the spent work of processors that verify transactions, and it is, as planned, reduced over time, through a process known as halving. The last such event took place in May last year when the mining prize awarded every 10 minutes fell from 12.5 to 6.25 bitcoins. Back then, the value of one bitcoin was less than 9, and today it is at around $ 50,000.

According to Satoshi’s plan

The gradual reduction in the number of bitcoins allocated aims to delay the moment when all ever available bitcoins will be released into circulation. There will be only 21 million of them, as the mysterious Satoshi Nakamoto planned when launching this cryptocurrency. According to data collected from the platform by Cointelegraph, by the beginning of this week, miners had generated a total of 18.899 million bitcoins. This means that the limit of 90% of all bitcoins that will ever be created has just been exceeded.

It took 12 years to achieve this 90%, but the remaining 10% will take more than that, precisely because of the previously described process of halving and reducing the rewards for miners. The calculation shows that mining will be able to power for the next 119 years or so, as halving the reward by about every 4 years will significantly slow bitcoin generation. The next halving is expected in 2024 when the prize should fall to 3,125 BTC.

A progressive slowdown in awarding should bring an increase in the price of bitcoin in the future, and will also mean that around 2040, the regular reward will be less than 0.2 BTC. About 80,000 bitcoins should then remain available for mining. According to these trends, it will take about 40 years to mine the last bitcoin.

Currently, just under 18.9 million bitcoins have a total value of just over $ 920 billion, which is about 41% of the value of the entire crypto market. It is currently at around $ 2.23 trillion.