Bitcoin (BTC) reached 80% of the total supply, only 20% left to be mined. What’s next?
January 15, 2018 11:51 am
This weekend indicates a milestone for bitcoin since 80 percent of the cryptocurrency has now been mined into the distribution, this means there is only 20 percent left to mine. An anonymous person ‘Satoshi Nakamoto’ who created bitcoin, his protocol s one of the first to introduce digital poverty and soon enough the digital asset will become even harder to obtain.
There Are Only 4.2 Million Bitcoins Left to get Mined
On January 13, 2018, 16,800,000 BTC have been mined and there is only 20 percent left for miners to earn. When Satoshi Nakamoto introduced the bitcoin protocol to the public by launching the codebase in 2009, the digital currency came with a complete supply. The supply will never be increased and Nakamoto set the number to 21 million bitcoins ever to be found. So far the creator’s idea and miners securing the network have successfully secured this rule from changing with hashpower. Apparently, anyhow, skeptics trusts there could be a way to increase the supply through manipulative tactics such as a 51 percent or Sybil attack. As the digital asset’s life approaches a decade no one has been able to break the rules of 21 million supply cap.
Solving the General’s Problem
This has given people the reason to believe that Satoshi solved one of the hardest computational equations, the Byzantine General’s problem, a security flaw that had bothered computer scientists for decades. Basically, the problem exists with distributed networks as the issue brings certain faults or security flaws making it easy to attack. This, in turn, makes it hard for protocols to prove something since there is an unsolvability proof within the network.
Proof of Work
Satoshi’s Proof-of-Work in the original Bitcoin protocol, the economic measure makes it difficult to attack by making threats to the network costly, and it is time-consuming. For the first time ever in the world of digital computing, Satoshi launched an asset that couldn’t be copied. Meanwhile, he limited the supply which also introduced digital scarcity like no other technology before it.
Due to the difficulty in accessibility, miners themselves are going to have to up their processing power constantly. In two years or less depending on hashrate speed, the next miner reward halving is approaching. This means instead of miners getting 12.5 BTC for every block they mine they will get 6.25 BTC in two years time. This network consent agreement of a halving every four years will make bitcoins more difficult to achieve even for the large warehouses all over the world filled with data processors. Every one of them and ASIC technology itself will have to progress for mining operations to continue profiting. Of course, the price per bitcoin should also be higher than the cost of mining the currency as well.
There will be only 21 million Bitcoins Unlike Ripple’s 100 Billion
We always need to consider one thing while observing the huge blockchain environment is that Satoshi’s creation unlike the 1,300 other cryptocurrencies in existence has only 21 million. Other digital currencies have billions already in distribution and billions more to come using other less tested consensus mechanisms like Proof-of-Stake. So in reality bitcoin’s inventor created something unique and different than the digital goods we all trade today. This weekend 16.8 million of them have been mined, acquired and a large number of them have been lost. To many cryptocurrency investors, this makes Satoshi’s invention a very valuable digital asset, unlike anything the world has ever seen.