(ORDO NEWS) — Bitcoin passed an important milestone on Monday, reaching 90% of the total available for mining resources, as 18.9 million bitcoins, a maximum of 21 million, were mined and are in circulation on various crypto exchanges.
The latest data shows that the remaining amount of bitcoins that can be mined is 2.1 million, or 10% of the total supply.
Bitcoin’s enigmatic creator Satoshi Nakamoto has programmed the mining algorithm so that the rate at which Bitcoin is generated would halve for every 210,000 blocks mined, or roughly every four years. In general, bitcoin mining speed will decrease over time.
When the cryptocurrency was created in 2009, miners were paid 50 bitcoins per block, but a double cut in 2016 reduced the possibilities to 12.5 bitcoins per block, and then to 6.25 bitcoins in May 2020. The next cut, which will happen in 2024, will bring the options down to 3.125 bitcoin.
“Bitcoin has reached a historic milestone as 90% of the maximum 21 million bitcoins have already been mined. The Bitcoin scarcity is one of its most attractive aspects as an investment, and this is what many people, institutions and governments are beginning to understand.I think the Bitcoin shortage will lead to a supply shock for Bitcoin to help it overtake the market cap of gold over the next 10 years, which is about $ 10 trillion, ”Marcus Sotiriou, an analyst at UK digital asset broker GlobalBlock, told The Independent.
Sotiriou suggests that one bitcoin will be worth $ 500,000 in the future.
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