When Will the Bitcoin Cap Be Reached?

How Bitcoin Works?

by DailyCryptoInfo 329 Views

When Will the Bitcoin Cap Be Reached?

How Bitcoin Works?

by DailyCryptoInfo 329 Views

The cap would be reached around 2140, which is 122 years from now.


The Last Bitcoin?

What happens when the last bitcoin is mined? When the last bitcoin in existence is mined, there will be no more rewards for miners. This doesn’t mean that the blockchain will shut down, because transactions will still need validation and a place to be stored. When there are no more coins all the benefit will come from transactions. When there’s a higher fee, there is more incentive for the miners to prioritize and include it in a block. This can generally be the essence of miners in the next 100 years where there are no more coins to be mined.

There is however, a very large time gap between now and the time BTC will be depleted. If we look at how much has happened since the coin was created 10 years ago, it’s safe to assume that the amount of possibilities is endless.

When Will the Bitcoin Cap Be Reached?


80% Of All Bitcoins Already Mined

BTC contains the 21 mln cap built into its protocol by Satoshi Nakamoto, first mentioned in their 2008 White Paper, as a way to introduce digital scarcity to cryptocurrency. With such a cap in place, the more bitcoins are mined, the more scarcity is produced on the market.

Scarcity arguably creates demand, which in turns makes the coins more valuable. Once 21 million bitcoins have been mined, it will become even harder to obtain them, also potentially making each coin more valuable.

Miners currently receive a 12.5 BTC reward for every block that they mine, but Nakamoto’s protocol also requires that the mining reward is halved every 210,000 blocks, or approximately four years. The next miner halving will take place within two years, approximately in early June 2020 depending on hashrate, bringing the rewards down to 6.25 BTC per mined block.

Not every digital currency is mineable like BTC. Some cryptocurrencies are created with the entire supply released all at once, in which case the total supply is either held or in circulation and there is no way to “mine” or mint new coins.

When Will the Bitcoin Cap Be Reached?

Lightning Network

Lightning Network can play a huge role if it’s integrated within the next few years and the second layer of solutions it provides for the Bitcoin blockchain could be paramount. The lightning network will allow users to open multiple payment channels between the blockchain and themselves. This will allow for the channel to remain open and recorded, but all transactions will be done off the chain until the channel is closed. To simplify, this means that users are depositing bitcoin into the channel and conduct transactions based on a promise of ownership. When the channel is closed, users take their proportion of the total sum and all record is transferred to the blockchain.

This offers interesting implications for future miners if transaction fees are their only incentive. If the lightning network reaches mass adoption, this could limit the number of recorded transactions.

Comments