What happens after all Bitcoins are mined and network reaches its final cap of 21 million?


What happens after all Bitcoins are mined and network reaches its final cap of 21 million?

It's known there is 21 million Bitcoin. However, 19 million are already mined. So, what will happen after the mining of Bitcoin is no longer possible? 

Bitcoin's algorithm is set up to add a new block every 10 minutes to the Bitcoin blockchain. The current reward is 6.25 Bitcoin per block, meaning that 900 new Bitcoin are added daily during Bitcoin mining. However, after 210,000 blocks, the remuneration is cut in half, which is also known as a "halving" event. The impact of a halving element in the process is crucial since miners immediately lose half of their revenue from block rewards. 

The interesting fact is when Bitcoin was first released, the block reward was 50 Bitcoin per block (can you imagine that now, huh?), but, at the time, the value of those rewards was significantly lower (the market price of Bitcoin was well under $100).

A miner earns about 0.14 Bitcoin on average for each block based on current rates, so mining one Bitcoin can take a long while. Thus, miners earn about $4,000 per block or $576,000 per day, accounting for current market prices. Today, this number is relatively low compared to the almost trillion-dollar value that Bitcoin secures in the network. Still, as the ecosystem grows, we could expect that the value of transaction fees will increase.

Considering the information above, all Bitcoin will be mined and in circulation by the year 2140, which is a significant amount of time ahead to grow and become more globalized for the network. In 2140, all of a miner's revenue will be associated with just the transaction fees on the network.

So, is mining profitable? Yes! Will it be profitable for long? For the foreseeable future, certainly.

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