Bitcoin that came into existence 13 years ago has a total circulation of 21 million and out of those 21 million 19 million has came into existence and circulation this month. That means more than 90% of bitcoin that will ever exist is now here in this world.
Bitcoin as i mentioned above has come into circulation of more than 90% in 13 years so you must be thinking that in next few years the 100% of bitcoins circulation will be reached. Well thats not true and there is a event known as bitcoin halving that will not let the 100% circulation reach so fast.
Let us understand what bitcoin halving is all about and how does it effect circulation reaching 100%. Bitcoin is a public ledger consisting of many nodes all around the globe making it a global network. Powerful PC’s are ran 24x7 for mining of bitcoin or we can say producing of new blocks for bitcoin network.
It is not as easy as our blurt proof of stake where blocks are mined every second. Anyways , so when a block of bitcoin is mined there is reward that is being distributed just like in blurt for mining a block top 20 witnesses get 0.33 blurt approx and 1.6 approx for people outside of top 20.
In bitcoin when the genesis block was produced the mining reward was 50 bitcoin but in current year that has come down to 6.25 btc for the same. This decrease in reward for mining is due to the event that i talked about above Bitcoin halving.
In every four year around 210000 blocks of bitcoin are mined and after that bitcoin halving occurs and then the rate at which bitcoin are coming to the market in last four years get half. So every bitcoin halving will do this and next halving will reduce the reward to 3.125 ( that is going to happen in march , 2024 )
So do you get now why we all will not be able to see the 100% of bitcoin Sippy in the market in our life. It is because with this halving calculation the bitcoin will reach its 100% supply by year 2140 and by then we all will be in our graves resting in peace probably.
Maybe our kids or grandkids will be able to see the more of blockchain technology and bitcoin. Anyways it is what it is and we cannot do anything about it. We all are still lucky to see the essential journey of bitcoin and blockchain technology and that is something our future generation will not experience.
Anyways thats all for today , i was not able to write technical blogs for a long time so i hope it was a interesting and informative blog to read for all the readers.
Thank you