As of today August 1, Bitcoin (BTC) has over 85 percent of its total supply in circulation. We are now left with only 3.15 million new coins for the next 4 months.
Data from monitoring resource Blockchain shows that Bitcoin (BTC) miners extracted the 17,850,000 unit as part of the transaction validation process on Thursday. And since the block reward decreases over time and the number of transactions per block increases, the remaining supply will only be released in the year 2140. Like most other cryptocurrencies, Bitcoin has a finite supply. There will only be 21,000,000 Bitcoin in existence. Once the network reaches that limit, no more Bitcoin can be mined. The idea behind this is to ensure the currency does not result in inflation.
“Scarcity is about to kick in,” a crypto trading account known as Rhythm posted on Twitter. The current Bitcoin supply means that only 17.8 million people can own one Bitcoin each. However, there are millions of coins that are considered lost. Just how many coins have vanished forever is not very clear. But according to estimates published by Chainalysis in 2017, more than 20% of the total BTC supply could have gone missing.
By the end of the day today, 17,850,000 bitcoin will have been mined!
Total bitcoin that’s been mined:
Scarcity is about to kick in.
— Rhythm (@Rhythmtrader) July 31, 2019
Bitcoin mining competition
Bitcoin reward halving is set to occur in May next year. The event will see mining rewards reduced to 6.5 Bitcoin (BTC) per block from 12.5 BTC per block. This requires more electricity to process the same amount of transactions. Halving is meant to cause scarcity in the supply of the currency.
According to industry experts, the scarcity will increase the demand of the asset just like precious metals such as silver and gold. Filb Filb is one of the experts who believe Bitcoin price won’t fall below $6500 again because miners will do everything possible to optimize their profitability. He said the price crashes and mining difficulty will flush out weak players.