The Milestone of Bitcoin Mining: Approaching Scarcity and Value

Bitcoin’s Significant Milestone

On January 13, a notable event transpired in the Bitcoin universe: 16.8 million bitcoins (BTC) were mined, representing a whopping 80% of its total supply. With only 4.2 million bitcoins left to mine, the digital currency is nearing its famed 21 million cap, creating an air of exclusivity that’s hard to resist.

The Concept of Digital Scarcity

Enter Satoshi Nakamoto, the mysterious figure behind Bitcoin’s inception, who ingeniously baked in the idea of scarcity when they penned the original White Paper in 2008. The cap of 21 million bitcoins isn’t just a number; it’s a revolution in the world of digital currencies. As we inch closer to that cap, the scarcity of bitcoins is expected to inflate their perceived value!

Value Through Scarcity

Think about it: as the available bitcoins dwindle, the demand is likely to surge. The economic principle of supply and demand at its finest! The more difficult it becomes to acquire a bitcoin, the more desirable that little digital coin becomes. It’s like a digital version of hunting for a rare Pokémon—everyone wants it, but only a lucky few will catch it!

Mining Rewards and Halving Events

Currently, miners are rewarded with 12.5 BTC for each block they successfully mine. However, that’s not set in stone. To keep things spicy, Nakamoto’s protocol ensures that this reward gets sliced in half every 210,000 blocks—roughly every four years. So mark your calendars because the next halving event is expected to occur around early June 2020, reducing the reward down to 6.25 BTC per block! This moment, dear friends, could set off a ripple effect in Bitcoin’s market value.

Mineable vs. Non-Mineable Cryptos

Not all cryptocurrencies play by the same rules as Bitcoin. Unlike BTC, some digital currencies release their entire supply at once, making them non-mineable. Take Ripple, IOTA, and NEO, for instance. Once those coins are out of the oven, there’s no additional baking—what you see is what you get!

Examples of Non-Mineable Coins

• Ripple (XRP)
• IOTA (MIOTA)
• NEM (XEM)
• NEO (NEO)
• Qtum (QTUM)
• Omisego (OMG)
• Lisk (LSK)
• Stratis (STRAT)
• Waves (WAVES)
• EOS (EOS)

The Phantom Threat of Supply Increase

Now, some skeptics love to throw around the threat of a potential increase in Bitcoin’s capped supply through nefarious means like a 51% or Sybil attack. But so far, these fears remain well in the realm of conjecture, as real-world attempts have proven fruitless. Remember the Krypton mishap in August 2016? Yeah, that shriveled up like a forgotten salad in the fridge; no other attacks have since made headlines.

Bitcoin’s Current Stardom

Despite the tumultuous market, BTC is showing signs of life again, rebounding from December 22’s market dip. As of now, it’s trading at an average of $14,200, boasting a 4.75% increase in just 24 hours. If only my investments grew at that rate!