Bitcoin just like gold has a limited and finite supply, and the 21 million bitcoins that can be mined in total just became a bit more limited. This is after the issuing of the 17th Millionth Coin a development that is seen to mark a milestone for the world’s first digital currency, given Bitcoin’s protocol for a capped supply. This serves a reminder for the digital scarcity that the technology and shared software creates and enables.
However, who will mine or the exact time when the 17th millionth bitcoin will be mined can’t be precisely predicted since there are numerous minute variances brought about by the keeping of a common software in sync. There’s relative predictability though, with the knowledge that a new bitcoin block produces 12.5 new bitcoin roughly every 10 minutes and with this 1,800 new bitcoins are created on a daily basis.
The Significance Of Bitcoin’s 17th Millionth Coin
This issue of the Bitcoin’s 17th Millionth coin issue provides an opportunity for education in broad terms both of cryptocurrencies and the features of bitcoin. There has been a major role played by the world’s first cryptocurrency’s association with money, other scarce, naturally occurring assets and economics. This is to say that unless all human-computer interactions and operations in running the bitcoin software decide to effect a change, which is highly unlikely currently, the introduction of any more new bitcoin looks like a tall order today.
The blockchain technology is through a network responsible for the creation of bitcoin as opposed to being issued by a central bank. In short, the supply of the cryptocurrency is not in the hands of a central authority, and the creation or deduction of bitcoins from the final supply is determined by the blockchain technology.
Bitcoin participants have been rewarded over time and the trend is changed. The first 50 bitcoins were created and mined from the first block by Satoshi Nakamoto on January 3rd, 2009, with the reward staying the same for up to 209,999 blocks when the reduction in rewards first happened. This is as a result of a hard-coded schedule that has seen the network decrease the reward every 210,000 blocks, a reduction by 50 percent.
With this information on halving of rewards, it should be noted that there are only 4 million bitcoins left to mine but it will take about nine years before the network reaches its final supply. This is because of the halvening’s effect on the rate of monetary inflation which slows the supply growth.
Should Bitcoin maintain its protocol of limited supply and cap the supply at 21million, and the mining of a new block stays unchanged at 10 minutes with the halving schedule on course, the last new bitcoin will not be mined until May 2140.