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How much will bitcoin cost after mining 21 million coins

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Why there will never be more than 21 million bitcoin.

How much will bitcoin cost after mining 21 million coins

How much will bitcoin cost after mining 21 million coins
CONTENT

  • Bitcoin halving will reduce production of minable coins

  • Bitcoin value is supported by miners and the community, not external factors

  • Hard forks will be able to provide the value of the cryptocurrency even after all the coins have been mined

How much will bitcoin cost after mining 21 million coins

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The number of bitcoins on the network is strictly limited and amounts to 21 million. Coins are issued with an interval of 10 minutes and, if the first four years in each period of time, 50 BTC were issued, then during the first halving the number of coins issued was halved, i.e. up to 25 pieces.

Bitcoin halving is cutting the number of new coins miners create and earn by half. This happens approximately every four years and … More, which will tentatively take place on May 14, will reduce not only the reward for mining BTC, but also the number of coins issued in 10 minutes to 12.5 coins. As a result, the entire supply of bitcoins is 21 million. will be roughly mined by 2140, after which the bitcoin network will not issue a reward for mining cryptocurrency. Will mining die at this time and how much will Bitcoin cost? Phil Geiger, a specialist at Unchained Capital, tried to answer these questions.

In his article, Geiger discusses how bitcoin can maintain its value and high value after 2140. In this matter, he draws a parallel with fiat currencies. When stocks of fiat money dwindle, governments simply turn on the printing press and release the remaining funds. For example, the US Federal Reserve System does this. At the time of the financial crisis, which was caused by the fall in stock, commodity and financial markets due to the spread of coronavirus infection, the US government decided to issue 1.77 trillion. dollars that will cover the budget deficit. But did this make the dollar itself more valuable as a currency? Geiger says no. And in the near future, the value of the dollar will start falling rapidly. In the end, the American currency will lose its status of “hard”.

How much will bitcoin cost after mining 21 million coins

What happens to bitcoin? The number of crypto coins in the system is strictly limited, and the Bitcoin blockchain itself cannot carry out an additional issue of coins, thus covering the high demand for it. This means that reducing the number of coins available for mining will simultaneously increase the cost of MTC. How it looks in practice?

Geiger explains that today the price of bitcoin is formed based on several factors. The most important is the interest of the community. If coin holders believe in the blockchain and the value of BTC, actively buy and hold the coin in their portfolio, thereby creating demand, then, accordingly, the cryptocurrency is growing in value. In addition, transaction fees add value to the coin. All types of transfers are taken into account here: both when buying or selling, and during mining.

However, let’s say that the coins available for mining on the Bitcoin blockchain have run out. How can the network and miners influence the value of military-technical cooperation? The answer is simple: forks. Geiger believes that the fewer coins available for mining there will be on the network, the more forks there will be. In fact, forks will generate cryptocurrency derivatives from bitcoin, thereby meeting the growing demand from holders. According to Geiger, it is the hard forks, which are accompanied by the release of new coins such as BCH and Bitcoin Gold, that will keep the miners working and pay them a reward for mining coins. At the same time, bitcoin will remain the limited and most valuable crypto asset of all on the market, while derivative coins will support the value of BTC and pay rewards to miners..

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How much will bitcoin cost after mining 21 million coins

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