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One of the most distinguishing features of Bitcoin (BTC) is its restricted coin supply. BTC developer Satoshi Nakamoto conceived the cryptocurrency essentially as digital gold and capped the BTC maximum supply to match the finite amount of physical gold.
The quantity of BTCs that can be issued is limited to 21 million. Every 10 minutes, new BTCs are added to the BTC supply, which is the average amount of time it takes to create a new block of BTC. 1 After every 210,000 blocks, or roughly every four years, the number of BTCs minted every block is cut by 50% by design.
Due to the use of rounding operators in the BTC codebase, the amount of BTCs issued will almost certainly never surpass 21 million. The final BTC is not predicted to be generated until the year 2140, given that the number of new BTCs issued every block decreases by half every four years. When BTC was first created, the number of new BTCs issued every block was 50; however, that number has now dropped to 6.25 as of May 2020.
No additional BTCs will be issued when the maximum number of BTCs has been achieved, even if that amount is slightly less than 21 million. BTC transactions will continue to be pooled and processed into blocks, and BTC miners will be compensated most likely with transaction processing fees. BTC miners are expected to be affected by BTC reaching its upper supply limit, but how they are affected depends partly on how BTC matures as a cryptocurrency. Suppose the BTC blockchain processes a large number of transactions in 2140. In that case, BTC miners may still be able to profit solely from transaction processing fees.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
One of the most distinguishing features of Bitcoin (BTC) is its restricted coin supply. BTC developer Satoshi Nakamoto conceived the cryptocurrency essentially as digital gold and capped the BTC maximum supply to match the finite amount of physical gold.
The quantity of BTCs that can be issued is limited to 21 million. Every 10 minutes, new BTCs are added to the BTC supply, which is the average amount of time it takes to create a new block of BTC. 1 After every 210,000 blocks, or roughly every four years, the number of BTCs minted every block is cut by 50% by design.
Due to the use of rounding operators in the BTC codebase, the amount of BTCs issued will almost certainly never surpass 21 million. The final BTC is not predicted to be generated until the year 2140, given that the number of new BTCs issued every block decreases by half every four years. When BTC was first created, the number of new BTCs issued every block was 50; however, that number has now dropped to 6.25 as of May 2020.
No additional BTCs will be issued when the maximum number of BTCs has been achieved, even if that amount is slightly less than 21 million. BTC transactions will continue to be pooled and processed into blocks, and BTC miners will be compensated most likely with transaction processing fees. BTC miners are expected to be affected by BTC reaching its upper supply limit, but how they are affected depends partly on how BTC matures as a cryptocurrency. Suppose the BTC blockchain processes a large number of transactions in 2140. In that case, BTC miners may still be able to profit solely from transaction processing fees.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
