Introduction
Bitcoin is a digital currency or cryptocurrency created in 2009 by an anonymous person or group known as Satoshi Nakamoto. It is a decentralized form of money, meaning that it is not controlled by any government or central bank. Bitcoin works on a blockchain technology, which is a distributed public ledger that records all transactions and is secured through cryptography.
The total number of bitcoins that can exist is limited, which sets it apart from fiat currencies such as the US dollar or euro. This article will explore how much bitcoins exist, the supply of bitcoin, and what this means for investors.
Exploring the Supply of Bitcoin
The maximum number of bitcoins that can ever exist is 21 million. This limit was set by Nakamoto in the original Bitcoin white paper. As of May 2021, there are 18.7 million bitcoins in circulation. This leaves 2.3 million yet to be mined.
Mining is the process by which new bitcoins are created. Miners use powerful computers to solve complex mathematical equations to verify transactions and add them to the blockchain. In return, they receive newly minted bitcoins as a reward. The reward is halved every 210,000 blocks, which occurs approximately every four years. The last halving event occurred in May 2020, reducing the reward from 12.5 to 6.25 bitcoins per block.
It is estimated that the last bitcoin will be mined in 2140. At this point, the maximum supply of 21 million bitcoins will have been reached.
Guide to Amount of Bitcoin in Circulation
As of May 2021, there are 18.7 million bitcoins in circulation. This represents 88.9% of the total maximum supply of 21 million. The remaining 11.1% of the maximum supply is yet to be mined.
The current supply of bitcoin can be tracked using the Bitcoin Supply Chart. This chart shows the total number of bitcoins in circulation over time. It also provides information about the current market capitalization of bitcoin, its trading volume, and the amount of bitcoin held by large holders.
It is important to note that the current supply of bitcoin is not evenly distributed. A significant portion of the circulating bitcoins is held by early adopters, miners, and other large holders. This means that there is less bitcoin available to be bought and sold on the open market.
What Does a Finite Supply Mean for Investors?
The finite supply of bitcoin has implications for investors. The limited supply means that prices tend to increase over time due to increased demand. This makes bitcoin an attractive investment option for those looking to store wealth over the long-term.
It also means that bitcoin’s value is not susceptible to inflationary pressures like fiat currencies. This makes it an appealing alternative to traditional currencies for investors seeking to hedge against inflation.
Conclusion
The total number of bitcoins that exist is limited to 21 million. As of May 2021, 18.7 million of these coins are in circulation. The remaining 11.1% of the maximum supply will be mined over the next 120 years.
Investors should understand the implications of the finite supply of bitcoin on their investments. The limited supply means that prices tend to increase over time due to increased demand, making it an attractive investment option for those looking to store wealth over the long-term. It also means that bitcoin’s value is not susceptible to inflationary pressures like fiat currencies, making it an appealing alternative for investors seeking to hedge against inflation.
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