The Bitcoin network has only reached 20 million coins mined, and only one million bitcoins will be mined over the next century.
“The market is about to experience something new: the global asset is left with almost no new supply,” Energy Co managing partner David Eng said in a note to X on Sunday.
On average, about 450 new Bitcoins are mined every day at the current rate. This rate halves roughly every four years as a result of Bitcoin’s halving. With only 1 million Bitcoins left in supply, the last Bitcoin will be mined around 2140.
Bitcoin’s final supply offers “predictable rules”.
The CEO of Bitcoin mining company Elektron Energy, Rafael Zaguri, told Cointelegraph that the apparent level of supply of Bitcoin is “unprecedented”.
“The release schedule decades into the future is transparent. People appreciate predictable rules, especially when it comes to money,” Zaguri said.
“One million calculations reinforces everything that is unique about Bitcoin,” added portfolio manager of crypto exchange Swyftx Tommy Rogulj.
“It’s a hard-capped, permissionless, neutral asset that operates on a transparent supply chain that can’t be scaled as a fiat currency. This is critical in a world increasingly fraught with conflict and technological uncertainty.”
In December, asset management firm Grayscale Investments said that “a digital currency system with a transparent, unpredictable and ultimately trivial supply is a simple idea, but it has increasing appeal in today’s economy due to the tail risks of fiat currencies.”
“No event, no impact” on BTC price: Exec Crypto
However, crypto analysts were not convinced that the latest phase would affect the price of Bitcoin.
“Markets have already priced in the rate of supply growth (inflationary rate) of BTC, and it’s already lower than gold,” Capriole Investments founder Charles Edwards told Cointelegraph. “I think it’s a non-event and has no impact.”
Zagouri agrees with Edwards. “I don’t think a phase alone will change the price in the short term,” Zaguri said, adding that “liquidity and macro are still dominant.”
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“But long-term, scarcity and predictable politics are a powerful combination. Over time, markets tend to reward systems that people trust,” he said.
According to CoinMarketCap, Bitcoin was trading at $68,670 at press time, down nearly 19% over the past year.
What happens when the supply of Bitcoin stops?
One of the biggest questions among Bitcoiners is what will happen after the last Bitcoin is mined in 2140, and some are worried that the security of the network could suffer because miners will no longer be motivated by new coins.
It is understood that at that point, the Bitcoin model will switch to transaction fees to encourage miners to continue to secure the network, although there are some concerns that it may lead to higher transaction fees.
Magazine: The Debate About Bitcoin’s Four-Year Cycle Is Over: Benjamin Cowen
