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What is the Total Number of Bitcoin that Can Be Created?

Bitcoin is the largest cryptocurrency in terms of market cap and is the first crypto that was ever created. There are certain facts about Bitcoin that are interesting, and one of them is the total number of coins that can be mined.

Satoshi Nakamoto set the total number of Bitcoins that can be created at 21 million. Bitcoins are generated via cryptocurrency mining, a process where miners solve complex algorithmic problems to approve transactions on the network and earn Bitcoin as a reward. Every day, there are a few BTC blocks available to mine. At the time of this report, as of October 2022, there are 19,182,668.00 BTC currently in circulation. This means that more than 91% of all Bitcoins have been mined. However, it is important to know that not every Bitcoin mined to date is currently in circulation. This is because some Bitcoins have been lost forever since the users have forgotten the passwords to their wallets or no longer have access to their wallets.

The fact that not all the mined Bitcoins are currently in existence also reduces the total supply of Bitcoins in circulation. A recent report by the New York Times revealed that nearly 20% of Bitcoins are trapped in inaccessible wallets. The report added that the total value of those trapped Bitcoins is over $100 billion. These Bitcoins will likely be lost forever, affecting the total supply of Bitcoins in circulation. However, even if there weren’t trapped Bitcoins, the total number of Bitcoins that can ever be produced, as stated above, is 21 million.

Once this number is reached, there will no longer be any more Bitcoins that can be mined. Satoshi Nakamoto ensured that Bitcoin mining will reach the year 2078 (or 2140) thanks to the Bitcoin Halving technique introduced. The concept of Bitcoin halving is to reduce the number of available Bitcoins entering circulation by 50% every three years and nine months. If the trend continues at this pace, nearly all the 21 million Bitcoins will be mined by the year 2078 (or 2140). When that happens, there will be no more Bitcoins to mine.

There remains some confusion regarding the exact date when the total Bitcoin supply will end. Some sources claim that Bitcoins will be fully mined by the year 2140, while others claim that it will end by the year 2078. However, the difference can be attributed to some informal studies that conclude that the halving takes place every four years instead of every three years and nine months. If the halving trend continues on its current path and everything remains constant, the last Bitcoin will be mined around 2078. After the halving of 2020, the next Bitcoin halving event will take place in March or April 2024. The Bitcoin protocol will repeat its decade-long protocol and decrease the block reward to 3.125 BTC from the current 6.25 BTC.

Bitcoins are divided into smaller units called Satoshis. Each Satoshi comprises one 1/100 millionth of a Bitcoin. Interestingly, since the units are small, some industry experts suggest the total Bitcoin supply cap will be limited to 20,999,999 instead of the widely popular figure of 21 million Bitcoins.

Is the Total Number of Bitcoin Fixed?

Is the Total Number of Bitcoin Fixed?

Yes, the total Bitcoin supply and the number of BTCs that can be mined are fixed. The number was fixed since the early days of Bitcoin by its creator Satoshi Nakamoto. However, while the number is fixed, it can be changed.

When Nakamoto developed Bitcoin, he did it as an open-source project. This means that other developers and the broader community have a say in how the project is run. As such, codes can be introduced to correct some errors and improve certain aspects of Bitcoin. Hence, for those worried about what would happen when all the Bitcoins are mined, stakeholders have the power to decide to change the code and increase the limit. However, for that to happen, the majority of the stakeholders have to agree. Despite the incentive of such a change, increasing the total number of Bitcoins is highly debatable and controversial. It is theoretically possible to alter e the total Bitcoin supply by changing the underlying code.

Since Bitcoin is software, experts say that it can be changed. For that to happen, developers, stakeholders, and the community at large will need to agree to change the code. If an agreement is reached, the Bitcoin developers will write a code to insert those changes into the Bitcoin Core. After that happens, the community has to ensure that all nodes on the Bitcoin network accept the changes. Those who don’t accept the changes will be forced off the network. However, convincing every node to accept the changes would be huge work since Bitcoin was primarily developed as a stand-alone system that requires no changes. Those that don’t accept the changes will seek a hard fork, a consensus change that makes a previously invalid behavior valid.

There are also questions about what would happen to the stakeholders like miners and investors once all the 21 million Bitcoins have been mined. At the moment, no one can accurately predict what will happen to the stakeholders once all available Bitcoins have been mined. Miners make money by solving complex arithmetics on the Bitcoin network and earning Bitcoins as a reward for their work. However, once the last Bitcoin is mined, the incentive will be reduced. Some market experts favor the idea of increasing the transaction fees on the Bitcoin network to compensate for the absence of block rewards. Another interesting theory in the cryptocurrency space is that the Bitcoin platforms will only be used to carry out large transactions of high value. This means the miners will generate sufficient revenue to keep them satisfied.

For other stakeholders like retail and institutional investors, Bitcoin’s value is expected to increase by the time the last Bitcoin is mined. This is due to the law of scarcity. Since there can only be 21 million Bitcoins, the scarcity of the asset could trigger a massive increase in price over the coming years. Bitcoin’s price graph favors the idea that BTC price will surge after all the coins have been mined because the price of Bitcoin has consistently risen, despite the decreasing block rewards. Retail and institutional investors could hoard Bitcoins in their wallets instead of selling and releasing them into the market. Hence, causing a further decrease in the supply and an increase in the demand.