Bitcoin Circulation: Scarcity is Coming as Supply Dwindles

Bitcoin’s Journey to Scarcity

As of August 1, 85% of Bitcoin’s total supply is now in circulation, which translates to a mere 3.15 million coins waiting to be mined over the next 120 years. Yes, you read that right; miners are in it for the long haul! According to Blockchain data, the 17,850,000th Bitcoin was unearthed after a meticulous transaction validation process, leading us toward an eventual total supply cap of 21 million BTC.

The Countdown to 2140

With diminishing rewards for miners—think of it as a game of musical chairs—the final batch of BTC will not be fully unlocked until the year 2140. Scarcity is about to kick in harder than a toddler denied ice cream at a birthday party, as most of the new coins will remain elusive until that year arrives.

The Real Owners and Lost Coins

Currently, the numbers suggest only about 17,850,000 people can theoretically own a full Bitcoin. However, reality often throws a banana peel in our path; a good chunk of mined coins can’t be counted on. Due to folks misplacing keys or becoming lost in the crypto void, it’s estimated that up to 4 million bitcoins could be permanently inaccessible—over 20% of the total supply!

Preparation for the Next Halving

The next pivotal moment in the Bitcoin world is set for May 2020. This is when miner rewards will halve from 12.5 BTC to 6.25 BTC per block. Analysts are eagerly awaiting this event, claiming it could trigger a price surge. Think of it as Bitcoin’s version of a New Year’s resolution!

Mining: A Full Contact Sport

As the competition among Bitcoin miners intensifies, the difficulties and hash rate have reached unprecedented levels since Bitcoin’s meteoric rise in 2019. More miners mean better security for the network but also higher stakes as individuals and companies battle for their piece of the Bitcoin pie. Analyst Filb Filb predicts that the influence of miners on Bitcoin’s price will ramp up significantly as we inch closer to the halving event.