Bitcoin mining remains one of the most hotly debated aspects of the blockchain. Given the current BTC price, the miners are undoubtedly making a good amount of money for the blocks being mined. But: The difficulty of mining has also increased as more BTC is mined.
In the ten-year history of Bitcoin, more than 18.6 million of the total of 21 million Bitcoin blocks have been mined. That equates to almost 90% of the total BTC supply. This leaves a little more than 10% of the BTC supply that can be mined. There are currently around 2.250 million coins that need to be mined.
At the current rate, it is estimated that the last bitcoin will be mined in about 120 years. This is because the amount of Bitcoin is halved every four years, which means that less BTC is in circulation every four years.
Bitcoin mining in 2009 versus mining in 2021
The cryptocurrency, which hit the market in 2009, rewarded miners with 50 bitcoins for every block they mined. That was at a time when users could mine Bitcoin with an old laptop and a lousy graphics card. At the time, Bitcoin was worth next to nothing. So many miners forgot their coins or sold them at a very low price. The evolution of the Bitcoin price up to this point is an interesting time.
Since the introduction of the digital currency in 2021, there have been three halving events, each of which has drastically reduced the reward for a mined block. The first halving took place in 2012. At this point, the reward for a block was 25. The next halving came in 2016 when the reward was reduced to 12.5. The last halving took place in 2020. Here, too, the number of Bitcoins that you receive per minted block has been reduced by half – from 12.5 to 6.25.
The reward will continue to be cut in half every four years until all 21 million BTC are mined. Each time you cut them in half, the rewards for blocks mined are reduced by half each time. This makes the rewards for mined blocks smaller, while at the same time the difficulty of mining increases as the miners scramble for the rewards for mined blocks.
BTC growth over the years
The pioneering cryptocurrency only attracted a lot of attention after the “Silk Road” bankruptcy. Before Silk Road, BTC was only used by people who were there for the technology. The returns weren’t really significant at this point. The fact that you could literally buy anything with BTC on Silk Road – from drugs to guns – then led law enforcement to target the coin.
The BTC rate remained largely constant over this period despite its increased popularity. The most notable bull run took place in 2017-2018. At that time, many investors had heard of Bitcoin. The bull run made BTC a strong asset that can compete with others.
In 2021, an estimated 10% of the current world population will be invested in either BTC or Altcoins. The current numbers are between an estimated 51 and 52.4 million crypto investors worldwide. This represents tremendous growth compared to an estimated 2.9 to 5.8 million in 2017.
Proof of text: Newsbtc
Last updated on September 5, 2021
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