When it comes to Bitcoin, there are only a finite number of them that can ever be mined. So, what will happen when all the Bitcoin is mined? Let’s take a look.
When Bitcoin was first created, the founder (or creator) Satoshi Nakamoto set a limit of 21 million Bitcoins that could ever be mined. This was done for a few reasons, but the main reason was to prevent inflation.
If there were an infinite number of Bitcoins, then eventually the value of each individual Bitcoin would go down as more and more were mined and in circulation. By capping the number of Bitcoins, Satoshi Nakamoto ensured that each Bitcoin would remain valuable and be worth mining for.
So, what happens when all 21 million Bitcoins have been mined? Well, firstly, it’s important to note that it’s unlikely that all 21 million will be mined anytime soon. The rate at which new Bitcoins are being mined is slowing down as time goes on.
When all the Bitcoin is mined, there will be no new Bitcoin to be created and the supply of Bitcoin will become limited. As a result, the price of Bitcoin is likely to increase significantly due to increased demand and limited supply. This could lead to a situation where people are willing to pay large sums of money for small amounts of Bitcoin, which would make the currency highly volatile and potentially risky for investors. Therefore, it is important to understand the risks associated with investing in Bitcoin before making any decisions.
It’s estimated that the last Bitcoin won’t be mined until around the year 2140.
So, what happens when all the Bitcoins are finally mined? Well, transaction fees will likely become the main way that miners are rewarded for their work. Currently, miners are rewarded with both new Bitcoins (created out of thin air) and transaction fees collected from users.
Once all the Bitcoins have been mined, there will no longer be any new Bitcoins created. This means that transaction fees will become the sole source of income for miners.
This could lead to higher fees for users as miners will need to be incentivized to continue mining and verifying transactions.
Overall, once all the Bitcoin has been mined, it is likely that transaction fees will become the main way miners are compensated for their work. This could lead to higher fees for users but would also ensure that miners continue to verify transactions on the network.