What will happen if all the 21 Million bitcoins are mined?
Oct 20, 2017 Posted / 5253 Views
Bitcoin has been compared with Gold a lot of times, and often the two become a topic for debate that which one can be a better option for investment. Bitcoin is compared to Gold for the reason that it is somewhat similar to it. Like Gold, Bitcoin also has a finite and limited supply, where is gold is mined from the ground, Bitcoin, on the other hand, is mined digitally. For a matter of fact, only 21 million of Bitcoins can be mined in total. Once the miners have unbarred this amount of Bitcoins, the world's supply will approximately be exhausted, unless Bitcoin's protocol is altered to permit for more supply. Bitcoin supporters think that the fixed supply of the currency implies that banks are kept in check and are not permitted to whimsically issue a fiduciary media. But what will happen when the total supply of Bitcoin reaches its limit?
How will it affect the Miners?
Bitcoin miners are the people who solve tough mathematical problems to mine Bitcoins and thus help in the production of Bitcoins. If the total supply of Bitcoins comes to an end, then Bitcoin Miners will be greatly affected. The critics say that Bitcoin Miners will be kept away from the bitcoin block rewards, once they reach that mark, consequently miners will have to depend on the transaction fees for carrying on the operations. It can be assumed that the transaction fees will not be sufficient to keep the miners financially stable, once the mining process comes to an end, which can lead to an increase in the transaction fees.
What will happen to bitcoin prices?
Bitcoin has been going through a very fertile phase in terms of prices. It has seen a huge hike in the prices, thus making a mark of crossing $5,000. The market rule says that whenever there is a decrease in supply the demand increases, and the prices also increase. No One is sure how Bitcoin will endure spreading to the financial world and seems like that a limited supply of the currency may cause prices to continue to increase. There are also a huge buildup of inactive coins that are held around the globe, and the largest supply of which belongs to the person or group who founded Bitcoin, Satoshi Nakamoto. This supply, consisting of roughly one million Bitcoins, is purposely being conserved for a time when the total supply is facing increased levels of demand.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.