What happens when all the bitcoins are mined?

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btc mining

It is universally recognized that Bitcoins are the most controversial assets nowadays. Some people might even not know how it works or what is the main purpose of it, but they still have a general idea about it. But few of them know that there are a certain amount of Bitcoins on the market and their quantity is defined – 21,000,000 BTC. there are two ways to have Bitcoin – 1. To buy it on the online trading platforms or to mine. The article will discuss the mining process, what happens when all of them will be mined and what kind of impact it will have on the financial market and those, who already have a certain amount of BTCs on their account.

How does Bitcoin mining work?

Cryptocurrency mining is more like a reward. By this, you can earn Bitcoin without even paying for it. Your Bitcoin miner will receive the BTC for finishing the block on the blockchain once it approves the transaction. The miner, who explores a solution to a complex puzzle first, to finish the transaction. However, you will need to invest a lot of money and electricity in order to make the miner work properly, using high-power equipment and software specially designed for digital mining.

While the miners of Gold dig the ground to find gold which will be the guarantee for their money, Bitcoin miners are solving very difficult digital puzzles created by blockchain technology, while using a unique algorithm for that.

Bitcoin is considered to be a scarce asset due to its limited quantity. It is already decided that there are only 21 million Bitcoins to mine and use. Why the 21 million, we do not have a proven explanation about it. Bitcoin, in total, already holds a trillion on the financial market and the limited quantity of it is one of the reasons for its fluctuation and volatility.

Impact on miners

As we have already mentioned above, miners are rewarded by BTC for completing the transaction and finishing up to block. There are two ways of it – a portion of BTC on every single finished block and as a transaction fee, in order to verify each transaction. The higher the paid fee is, the quicker it is done, since it is more priority for the miner to complete. Since the mining process is not cheap and the fees may not be enough to make significant profits, people are given more options to earn small amounts of BTC. So efficiency of mining becomes questionable, why should one spend resources on mining when you can get a bigger amount of BTC for example from crypto-trading platforms that are offering “welcome bonuses” and a lot of casinos or entertainment websites offer you a Bitcoin bonus without deposit, as promotion. Turns out a person who’s mining is paying large bills on electricity to get the share of BTC that a player or a trader can receive by simply registering on a website. This is maybe, easiest and cheapest way to become a BTC owner, without having to have a GPU and to pay for the electricity. When all Bitcoins will be mined, there will be no rewards for completing each block. They will only earn BTC from transaction fees to verify it on online exchange platforms. It is still under the question mark, whether this fee will be sufficient or not for the miners, to keep doing this service or sell their GPUs and miners and look for easier ways to get BTC without buying it.

What happens when all Bitcoins are mined?

It is still under the question of whether after running out of 21 million bitcoins, it will be possible to generate more or not.

As for today, it is vivid that once all of them are mined, there will be no more BTC available for mining. Additional supply will be made in case of changing its protocol to allow more for mining. Once the supply is run out, there are possible implications that will have an influence on the financial market.

Contribution from crypto-miners, especially for Ethereum, made Nvidia’s profit from 100-300 million

Impact on market price and investment

There are almost 2 million Bitcoins left to be mined. Once it is all mined, it will lead to a price uprise. For investors, it might have a positive impact, since the limited quantity of BTC is the reason for its fluctuation and volatility, thus the price will be more or less defined and balanced.

Guessing the right time, when all of them will be mined, is too difficult. If it will continue with the same power strength as the first block, it is expected the last bitcoin to be mined in October 2140.

Conclusion

Being the most popular asset in the world, there is a lot of anticipation regarding BTC’s future. Some experts even say that it is the future of money and it cannot be dethroned. Its limited quantity has created negative rumors or opinions that prevent people from buying it, but little do they know that it is a very far perspective and it is not something we should be worried about. It might stable the financial market and BTC will not be considered as a coin which purpose is vague, but is important to keep up with the innovations on time, as we already see its price was three times more than five months ago, thus a lot of companies and countries are going to implement it as a payment method for the service or goods and ease the restrictions, respectively.