The Bitcoin network has reached a major milestone as the 20 millionth Bitcoin (BTC) has been mined today. With a total supply capped at 21 million, this moment signifies an important progression towards its ultimate scarcity.

Moreover, this event underscores one of the Bitcoin network’s greatest attributes: its transparency and predictability. Unlike traditional fiat currencies that can be printed on demand, Bitcoin adheres to a strict issuance schedule, hardcoded into its protocol. The integrity of this code is fundamental and remains immutable despite market fluctuations, ensuring public verification for anyone interested in its workings.

Digital Scarcity, Elevated

Data from BiTBO states that 95.2% of Bitcoin’s total supply, exactly 20,000,018.75 BTC, has been mined as of this post.

Source: BiTBO

The remaining one million Bitcoins will be notably harder to mine due to the network’s structural design. Halvings happen approximately every four years, cutting the mining rewards for integrating new blocks in half. This mechanism steadily curtails the fresh supply of BTC, as the mining process becomes increasingly challenging over time. Some forecasts suggest that the final Bitcoin will be mined by the year 2140.

This illustrates one of Bitcoin’s foundational principles - digital scarcity. Consequently, many investors have likened Bitcoin to gold due to its limited and diminishing supply.

However, it’s crucial to note that millions of Bitcoins are suspected to be lost permanently due to forgotten phrases and lost wallets, resulting in an effective circulating supply significantly below the capped limit of 21,000,000.

Implications of the Final Million

The last halving of Bitcoin occurred in 2024, which reduced the block reward from 6.25 to 3.125 BTC. The next halving is anticipated in two years, making Bitcoin even more scarce.

To contextualize the situation, approximately 450 Bitcoins are mined daily, indicating that a minuscule fraction of the remaining Bitcoins will be circulated by 2030.

This also implies that miners, who secure the network by validating transactions, will depend increasingly on transaction fees as block rewards diminish.