Bitcoin price: Crypto to soon run out after hitting last 10 per cent of supply

As we approach 2022, there are fears that Bitcoin has an expiration date. He is quickly approaching.

After Bitcoin’s huge year of 2021 – a whopping 157 percent increase by the end of the year – many investors are beginning to think about what happens when the cryptocurrency runs out.

As a way to stem inflation and preserve the value of the coin, mysterious Bitcoin creator Satoshi Nakamoto has put a limit on the number of coins that can exist.

The number of bitcoins is set at 21 million, which means that there will only be 21 million coins in circulation.

Bitcoin started trading around $0.08 in 2009 and now, at the time of writing, one coin is worth $46,000 (AU$64,000).

In the past 12 years since bitcoin was first launched, the value of bitcoin has increased by 33,978 percent.

A total of 18.9 million coins have been mined, according to CoinMarketCap — nearly 90 percent of the total supply.

Of those, 3.7 million were lost to the abyss forever, either due to death, or loss of access to coins.

This means that there are just over two million coins left for eager traders to get hold of.

But what happens when bitcoin runs out?

Current predictions are that by February 2140, bitcoin will run out.

While that seems like an unsustainable number given that nearly 90 percent of the supply has already been cut off in such a short time, there is an explanation for it.

This is because 83 percent of all bitcoins available have actually been issued in just 12 years since its inception.

However, less and less Bitcoin is being issued over time.

By the early 2030s, it is expected that 97 percent of Bitcoin will be available on the market, but only the last remaining three percent will be launched in the 110 years until 2140.

After that, there will be no new bitcoin and the only way to own the popular cryptocurrency since then is to buy it from an existing investor instead of mining it.

On average, coins are diluted in the Bitcoin supply at an average rate of about one block every 10 minutes.

However, that will stop by 2140.

Every ten minutes, bitcoin miners solve a puzzle that allows them to add a newly discovered block to the overall block chain, the process of mining.

As an incentive to discover the block and continue mining it in the future, the miner is given a fixed number of bitcoins for his work, called a “block reward”.

When bitcoin was first launched, this reward was a whopping 50 bitcoins.

Half of the reward is verified for every 210,000 new blocks, which expire approximately every four years.

As the value of Bitcoin rises, the reward remains attractive to miners, although it is declining.

Over the past 12 years, this reward has been downgraded to 25 bitcoins, then 12.5 coins, and most recently 6.25 bitcoins.

The last halving occurred in May 2020 and the next bonus cut is expected to occur in 2024 at current rates.

The bitcoin algorithm means that the supply of freshly mined bitcoin remains constant no matter how many miners there are.

But experts predict that the scarcity of Bitcoin will cause its price to rise.

In addition, you will never completely run out, according to Bitcoin fans, since there will always be someone willing to sell.

Read related topics:Cryptocurrency