Bitcoin miners have now produced the 18 millionth Bitcoin. It’s another milestone that puts its history in some perspective and gives us an idea of its future performance.
One of the most outstanding aspects of Bitcoin is its scarcity. As time progresses, more people around the globe continue to learn and appreciate the finite supply attribute of Bitcoin. A major factor that distinguishes Bitcoin from gold is the fact that the total amount of Bitcoin is predetermined.
Bitcoin’s history spans over 10 years. The surprising thing is that in such a short time, it is close to hitting the 85% mark of its total supply. The creator of Bitcoin, Satoshi Nakamoto, coded it in such a way that it can’t exceed 21 million Bitcoins. Even with the block reward halving every four years, the entire supply of Bitcoins won’t be mined until the year 2140.
And with this achievement of 18 million Bitcoins, that means that only 3 million remain to be mined in the following 120+ years.
At the moment, there are about 1,800 Bitcoins being mined daily. At the halving expected next May, the block reward will be cut in half from today’s 12.5 BTC to 6.25 BTC. Then the number of Bitcoins produced daily will be reduced to 900.
A point worth noting here is the fact that the effect of the change would bring down the inflation rate of Bitcoin from the current 3.72% to 1.8%, very much in-line with (or significantly better than) traditional fiat currencies.
This milestone may seem like just another number, but Bitcoin is experiencing increasing demand, decreasing supply, and it is increasingly hitting metrics that put it on par with national currencies around the world.
These factors should indicate that the current price cycle that Bitcoin is in will probably be coming to an end soon. It’s a simple matter of supply and demand. A smaller and smaller number of Bitcoins are being snatched up by an ever-growing number of people, businesses, institutions, and governments.
These milestones don’t feel noteworthy now, but mark these headlines and dates now and remember to look back on them. The first 18 million Bitcoins have given us an incredible show. The fight for the last 3 million should be spectacular.
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