Bitcoin’s (BTC) total supply is capped at 21 million coins. There will never be any more than that. Out of those 21 million, 17 million have already been mined. And that means that only 4 million (or 19% of the total) Bitcoins remain to be mined.
The coin cap was created as a way to create a scarcity. And the same protocol, which caps total supply at 21 million, makes the production rate slower over time. This is because the block reward is halved every 210,000 blocks. So not only there is a cap on the total, but the rate of new coin’s creation slows down too.
The last halving happened in July 2016. Since then the reward miners receive for mining a block is 12.5 BTC. According to this protocol and the pace of things – the last payout will be received in 2140.
All of this means that we still have 122 years of Bitcoin mining ahead of us. And since it will become gradually more difficult to mine it while the demand is constantly rising – we may soon see Bitcoin raise to never-before-seen heights.
Supply vs demand
This scarcity makes Bitcoin similar, in a way, to precious metals – gold being the most obvious comparison. And this comparison was already introduced in Satoshi Nakamoto’s original Bitcoin white paper.
Now however, some say that gold is “silly” compared to Bitcoin. This was a view expressed by John Pfeffer of Pfeffer Capital. According to Pfeffer, we have a chance to see Bitcoin with a $700k price tag in the near future.
So – no. It is definitely not too late to get into BTC. Bitcoin is here to stay and the new all-time-highs will come. It’s only a question of when and how high exactly.
Do you think that Bitcoin is better than gold? Let us know in the comments below!