Bitcoin Mining Recap⛏
New BTC are issued every time a new Bitcoin block is mined. The Bitcoin code ensures this happens roughly every 10 minutes by adjusting the mining difficulty depending on how many miners there are
The maximum amount of BTC that can ever be mined is 21 million, and this limit is built into Bitcoin’s code
⏲When Will The Last Bitcoin Be Mined?⏲
While each Bitcoin halving is supposed to occur 4 years apart, the last three halvings have occurred just 3 years and 9 months apart. Assuming this trend continues, the last Bitcoin will be mined near the end of 2078, much sooner than the 2140 figure that is often cited
👀What Happens When The Last Bitcoin Is Mined?👀
Besides the BTC miners get from each new Bitcoin block, they also earn fees as compensation for processing transactions. Many people believe that by the time the BTC mining rewards run out, these transaction fees will be enough to sustain the Bitcoin network
💱Solution: Layer 2s?💱
The problem with layer 2 solutions like the Lightning Network is that they reduce the number of transactions that actually occur on the Bitcoin blockchain
Fewer transactions mean that the fees for opening and closing these payment channels would have to be incredibly high for Bitcoin miners to remain profitable and operational
These high fees would then put pressure on layer 2s like the Lightning Network to minimize the opening and closing of their payment channels, resulting in a vicious cycle that threatens the network
⚡Solution: Electricity And Tech? ⚡
Cheap energy and efficient hardware would make it easy for Bitcoin miners to stay profitable using transaction fees alone, and it would even further decentralize Bitcoin as new miners join the network to get a share of those fees
💰Solution: Skin In The Game? 💰
If and when cities, states, and even governments begin holding BTC as part of their reserves, they will have all the incentive in the world to make sure the Bitcoin network remains secure and operational
If enough private companies start to hold large amounts of BTC, they too would have a reason to rush in and make sure the Bitcoin network remains operational
⛓Solution: Smart Contract Chains? ⛓
Given the rise in wrapped Bitcoin on Ethereum, it is possible if not likely that smart contract blockchains could become the future home for all the Bitcoin in circulation. Cardano and Polkadot will soon be introducing tokenized versions of Bitcoin to their blockchains as well
👩💻Can Bitcoin’s Maximum Supply Be Changed?👩💻
Changing Bitcoin’s maximum supply is possible so long as there is consensus from the QUOTE ‘economic majority’
