Bitcoin’s scarcity often affects the future price of the network and assets. benefit of potential It’s marked as, right?

So why only 21 million Is Bitcoin Designed to Be Produced?

Let’s start with the question: where do the new Bitcoins come from?

Every ten minutes, A new block is added to the blockchain and the miner who successfully adds the block is rewarded with both newly mined Bitcoins and the fees for transactions within the block.

However, Bitcoins are not in a predetermined pool. A When the block is successfully removed, New Bitcoins are created through a special type of transaction called a Coinbase transaction.

Bitcoin code is the block reward given in the Coinbase transaction. From 50 BTC It specifies that the block starts and decreases by half every 210,000 blocks.

This event “It’s called “halving” and occurs every four years. The last halving occurred on April 20, 2024.

Limiting the total supply of Bitcoin to 21 million units is critical to maintaining the security and scarcity of the network.

mined by miners for every 210,000 blocks The reward is generated and this reward is halved for the next block. 24

Every hour 6 blocks are made. this also 210 thousand 240 blocks in 4 years does. When we calculate all the block rewards:

We get the result 50 + 25 + 12.5 + 6.25 + … = 99.99847… If we multiply it by the block halving quantity of 210,000 pieces, 21 million pieces result we get.

This is why the total supply of Bitcoin is fixed at 21 million units. However, Satoshi Nakamoto received the first BTC block reward. If he had made 100 instead of 50 Today we would be talking about a supply limit of 42 million units, not 21 million.

Will Bitcoin Production Stop After 2140?

Theoretically, by community consensus Increasing the Bitcoin supply can be decided. However, such an idea would not be attractive to existing Bitcoin holders, as increasing the supply could negatively impact the asset’s value.

After 2140, miners will only be rewarded with transaction fees. However, the expected increase in BTC value keep mining profitable will provide.

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