As Bitcoin continues to rise in value, investors are starting to wonder whether they should invest now or wait until the price becomes better than it’s now. Knowing that the BTC market is very volatile, we can’t even predict if the price will go up in the next period, or if there would be a massive drop.
Bitcoin was created in 2008 and has since become the largest digital currency in existence. The total supply of Bitcoins is capped at 21 million units, although some are lost over time. After all 21 million Bitcoins are mined, no new ones will ever be added to the network. Or that’s how things were planned initially
For example, if all BTCs are already mined, the price will drop. Since the number of unmined Bitcoins is much lower than the existing one, the price goes up, and mining becomes more difficult and energy-consuming. Keeping up with the news can ease the whole reasoning around BTC, so make sure you follow https://the-bitcoin360-ai.com.
But, does it mean BTC will disappear after the complete supply is mined?
What happens if/when all 21 million Bitcoins are mined?
Could crypto inflation happen?
Inflation occurs when the value of money decreases but the cost of living increases. In the past, there have been several examples of money printing that only depreciated the value of a particular currency.
The crypto market can also be compared to the traditional economic system. We know Bitcoin that it is actually a digital reward that is obtained as a result of cryptocurrency mining.
Ever since the appearance of Bitcoin, it has been known that the amount of coins is limited, but no one believed that in about a decade most of them would already be mined.
In fact, every 10 minutes a new block is created in the blockchain, but the rewards are only small fractions of one Bitcoin.
Every 210,000 blocks, the reward is halved, which is known as a halving event. We had such an event in 2020 when there was a sharp drop in the value of BTC. After this, market stabilization follows.
In this way, crypto inflation is avoided, and after a while, the market becomes more stable than before.
What will happen when Bitcoins run out?
According to current developments, full mining of Bitcoins cannot happen before 2140.
Surely most of us will not even wait for this amount to be halved. In the long term, many changes are possible in the way cryptocurrencies are mined, as well as the restocking of coins in the blockchain.
Of course, if mass global acceptance and legalization of cryptocurrencies happen in the meantime, the value will surely drop.
What is important to know is that if there are no Bitcoins to mine, they will not disappear from circulation. They will still be available for various types of payments and transactions, but also for trading. This means that Bitcoin will circulate, but it will no longer be as volatile as it is now.
However, it’s safe to say that we won’t see it while we live unless the market itself crashes overnight. If things stay as they are now, miners will continue to receive rewards of sorts in the form of Bitcoins for their blockchain activities.
It all depends on the evolution of Bitcoin
Although it has been around for a long time, we all know that Bitcoin remains a controversial currency. What is known is that even after spending those 21 million coins, no replenishment will occur. The assumption is that the currency will be kept alive thanks to commissions and transaction costs.
Of course, the evolution of the currency itself is what is key in every aspect. At some point, this artificially created bubble will burst, leaving only particles behind. Those particles will continue to circulate in the crypto market. When that happens, many other cryptocurrencies will get a chance to be crypto gold or a safe haven.
There is a chance that the entire market will take on a completely new form, in which Bitcoin owners decide what happens to their money and how it is spent. But we can safely say that in the predicted the year 2140, people will be interested in many other things, and Bitcoin will not be their focus at all.
On the other hand, this market is still in a state of flux and we cannot predict what will happen in 2024, let alone 2140. All scenarios are possible, so all that we state in this article are assumptions and even speculations.
Is Bitcoin headed for history?
At the moment, BTC is still a current concept, but there are still many new things that are becoming much more interesting. We can say that the old glory still keeps Bitcoin alive and keeps interested at a higher level.
However, it is quite expected that industries will integrate different crypto technologies in their development. For example, gaming is already fully connected to Ethereum and NFT. Bitcoins are popular, but competition is increasing.
Although few cryptocurrencies have a chance to become what Bitcoin is to the world, we cannot deny the fact that things are changing day by day. Sometimes these changes are so fast that we can’t even expect to always keep up with them.
Most of the people alive right now probably won’t see the full “retirement” of Bitcoin, as there are still many years until that happens. The only exception would be the complete disappearance of the crypto market.
Hopefully, it is now clear to you what it means to completely deplete your Bitcoin supply. Also, global disappearance is not possible in this lifetime.
What’s left is for you to be smart if you’re trading cryptocurrencies, and to plan every next step. Remain aware of the volatility of the market so that you can adapt to real situations.
Be prepared for things to change very quickly, but also for many new currencies to appear that will make big changes in the market.
Of course, we would also like to hear your opinion on this topic, so feel free to share it.