Thu. Feb 29th, 2024

Bitcoin, a decentralized digital currency, is edging closer to its finite maximum supply level. This means that the coins available for public circulation are decreasing as they get mined. As a result, the value of Bitcoin has been on an upward trajectory due to the demand outstripping the limited supply.

According to data from BanklessTimes.com, 91.89% of the maximum supply of Bitcoin has already been mined, amounting to 19,772,300 BTC in circulation. This number will likely climb as more coins are mined over the next few years.

The last Bitcoin is expected to be mined around 2140. Once this happens, the market price of Bitcoin is expected to skyrocket as no more coins can be created, and supply meets demand.

Popular Investment Vehicle

According to BanklessTimes CEO, Jonathan Merry:

The scarcity of Bitcoin is one of its most essential characteristics, as it creates a sense of exclusivity and limits supply. The limited supply of Bitcoin means there is no way to create more of it, making it resistant to inflation. In contrast, fiat currencies such as the US dollar are subject to inflation due to central banks’ ability to create more currency at will.
BanklessTimes CEO, Jonathan Merry
The scarcity of Bitcoin has also made it a popular investment vehicle. Investors buy Bitcoin hoping its value will increase over time as demand for the limited supply grows. This has led to Bitcoin being seen as a store of value, similar to gold. However, unlike gold, Bitcoin is easily transferable and can be sent across the globe in a matter of minutes.

The scarcity of Bitcoin has also made it a popular choice for those looking to hedge against traditional financial systems. Bitcoin is decentralized, meaning that any central authority does not control it. This makes it resistant to government intervention, making it a safe haven for those worried about the instability of traditional financial systems.

Drawbacks of the Scarce Supply of Bitcoin

However, the scarcity of Bitcoin does not come without its downsides. The limited supply of Bitcoin has led to concerns about the environmental impact of Bitcoin mining. Bitcoin mining requires a significant amount of energy, with estimates suggesting that the entire Bitcoin network consumes more electricity than in some small countries. This has led to criticism of Bitcoin and calls for it to become more environmentally friendly.

As Bitcoin continues to evolve, it will be interesting to see how its scarcity plays out and how it affects its adoption and price.

By BNA

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