When will all Bitcoins be mined?
In order to revel when will all Bitcoins be mined, let us discuss what Bitcoin is. Bitcoin is the first of a growing number of cryptocurrencies, with the first 50 units having been drawn on 3 January 2009.
The term cryptocurrency refers to decentralized virtual currencies distributed over the Internet. After the recent boom in Bitcoin and other currencies of this type, cryptocurrencies have seen an immense increase in popularity – everyone wants to participate in what many consider to be a new “gold rush”.
Indeed, this comparison is not too far-fetched. Like the precious gold of yesteryear, most cryptocurrencies can also be “mined”. But still, when will all Bitcoins be mined?
Just like a natural resource, these currencies are not infinitely available, so there is bound to be an increase in value as demand increases, supply (i.e. availability) decreases, and eventually stagnates completely.
What Does “Dig” Mean? The Technical Aspects of Bitcoin Mining
“Digging”, also called “mining”, refers to the verification process of cryptocurrencies, the new generation of individual units of currency.
Mining is a system-inherent feature designed to make this type of currency attractive because cryptocurrency technology relies heavily on having a broad network of independent users to meet the demands of decentralization.
When Are All Bitcoins Mined? Is it Still Worth Joining?
The basis of every bitcoin-based cryptocurrency is the so-called “blockchain”. This is basically a large database that can be thought of as a “chain” of blocks of data. A cryptographic method appends new blocks to the blockchain that contain the latest transactions and value creations.
New blocks are generated by all the computers in the Bitcoin network sharing their computing power to solve a task set by the blockchain. Once a new block has been generated, a certain number of currency units will be distributed to those users who have contributed their computing power toward solving the task.
In this way, more and more units of cryptocurrency get into circulation. This system is governed by the difficulty of the tasks the blockchain places and the number of bitcoins that are distributed per newly-scrapped block.
On the one hand, the complexity of the tasks increases, so over time an ever-increasing amount of computing power has to be applied; this is currently happening about every two weeks.
On the other hand, the number of bitcoins for new blocks is continuously decreasing. This is regulated by “halving”, whereby the system determines from which number of processed blocks the yield halves per block – this happens every few years.
This creates a demand for the coveted coins, which increases the value and attracts more and more users to Bitcoin, who also want to participate in the business.
Bitcoin regulates itself to a degree.
Digging Bitcoins – Is it Still Worth Doing Today?
When will all Bitcoins be mined? To answer this question, let’s take a look at the history of the mining.
Since its beginnings in 2009, Bitcoin has undergone a radical transformation. If the tasks needed to excavate new blocks were easy to solve at first, their difficulty has been increasing ever since.
The result was a veritable arms race of the miners, who tried to gain advantages with even better, faster and optimized hardware and thus have better opportunities to earn the new Bitcoins.
At the beginning, a simple home computer was enough. The computing power of a standard processor was easily able to perform the mining. So we can count on it that when will all Bitcoins be mined, will be sooner then thougt.
Resourceful miners quickly realized that graphics processors from graphics cards were particularly well-suited to solving the arithmetic problems posed by the blockchain algorithm. Some users built whole blocks of graphics cards at home to improve their performance.
But even that was eventually unprofitable because this process consumed a lot of energy exclusively for systems cooling. Hardware specifically designed for the purpose of mining was able to accomplish these tasks even better and more cost-effectively.
This is called ASIC – “application-specific integrated circuits”. These “application-specific integrated circuits” were launched around the end of 2011. This basically means microchips that are specially programmed for a specific purpose.
In the case of Bitcoin, they are programmed to solve the tasks of the blockchain very efficiently. Today, there are a number of other options, such as cloud mining, where you can rent computing power from a provider and thus mine bitcoins.
A particularly interesting theory about the question of when all Bitcoins will be mined is “Moore’s Law”, which was formulated by Gordon Moore, one of the co-founders of the company Intel, as early as 1965.
It says that the world’s available computing power always doubles in a given period of time. This period is currently around 18 months and can actually be observed in the real world of the computer business.
Thus, a statement can be made that the complexity of the tasks to be solved in the blockchain theoretically must double every 18 months in order to remain at a constant level. However, as more and more new users get into mining Bitcoin, the complexity is likely to increase faster than this.
When will all Bitcoins be mined – is there a number?
With the help of the currently available computing power and the help of Moore’s law, some very uncertain statements can be made about the time needed to mine all Bitcoins.
At present, there are 16.782.587 units of the cryptocurrency Bitcoin. It is expected that 21,000,000 BTC will exist at the end of the mining phase. Extrapolations assume that the last bitcoins will be mined in 2140.
However, this will depend on a number of factors, such as computer developments in the years to come and how many halvings are still taking place. This is an aproximate upcsounting when will all Bitcoins be mined.
Coin-Report.net was founded by Thomas Mücke.
With the help of Coin-Report.net magazine, he tries to bring light to the field of crypto-currency.