90% Of Total Bitcoin Supply Has Been Mined. How Long Will The Rest Take?

Bitcoin, the pioneer in crypto investing, has been the top choice. There are many reasons why cryptocurrency is attractive to investors. Its limited supply has earned it the reputation of a deflationary investment, which makes it an excellent inflation hedge. The total number of bitcoins available for mining is 21 million.

BTC mining has been in existence for just over 10 years. The first eight years of mining activity were relatively flat, however they started to pick up in 2017-2018 when the bull market exploded. The bitcoin supply now accounts for 90%, despite numerous halvings.

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Bitcoin Mined Majority

Bitcoin officially reached 90% of its total supply on Monday. According to Blockchain.com data, more than 18.89 million BTC have been mined successfully since the launch of bitcoin in 2009. These numbers and the speed of mining raise concerns over a possible supply shock.

The demand for bitcoin is sure to rise as the cryptocurrency gains popularity. Only 5% of global population is aware of bitcoin at the moment. According to a recent survey, 55% percent of bitcoin holders accessed the market last year. Digital currencies such as Bitcoin will continue to grow in value, especially since the entire world is becoming one large global village.

Total bitcoin mined touches 90%

 Source: Blockchain| Source: Blockchain

A second reason that there could be a supply shock is because investors don’t intend to sell assets they own. BTC owners have been long-term investors and will continue to keep these coins in their possession. In the next few years, the market will see a decrease in supply and the asset’s price rise dramatically.

Is it possible to extract the remainder of the earth’s resources in a matter of weeks?

While it will only take about 12 years for most of the Bitcoin supply to be mined; the 10% remaining supply will take nearly 10 times as long. The halvings every four years are the reason for this. The halvings reduce the BTC rewards that miners receive for each block of mined blocks by half. At the moment, 6.25 BTC is paid per block.

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Each halving will result in a decrease in the number of bitcoins. This means that it will take over 100 years for the last bitcoin to be mined. This guarantees bitcoin’s longevity, as well as guarantees continued supply, albeit to a smaller extent each time.

Bitcoin price chart from TradingView.com

 Source : BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com

But, this does not mean that every bitcoin mined will end up in circulation. Around 20% of total bitcoin supply will be lost permanently due to people losing their keys or dying, leaving no access for others. Even if the 21 million BTC total is mined and minted, the supply will be limited to 21 million coins, which contributes to the shortage.

Featured image taken from NationalWorld. Chart by TradingView.com

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