Cryptocurrency Q&A
What happens if bitcoin's supply runs out?
What happens if bitcoin's supply runs out?
CryptoPioneer
Tue Jul 09 2024
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6 answers
885
With the finite nature of Bitcoin's supply, the question arises: what happens if Bitcoin's supply eventually runs out? Firstly, it's important to understand that the total supply of Bitcoin is capped at 21 million coins. As the mining difficulty increases and the rewards for mining decrease, the rate of new coins entering the market will gradually slow down. However, when the final Bitcoin is mined, the network will still continue to operate. Transactions will still be processed and verified by miners, albeit with different incentives such as transaction fees. Additionally, the scarcity of Bitcoin may drive up its value, as the demand for the limited supply continues to grow. While the implications are uncertain, it's an interesting question to ponder as we approach the end of Bitcoin's mining era.
6 answers
Lorenzo
Thu Jul 11 2024
However, this incentive structure underwent a change in 2012, with the reward being halved to 25 Bitcoins per block.
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Elena
Thu Jul 11 2024
Further, in 2016, the reward was again reduced to 12.5 Bitcoins per newly mined block.
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DaeguDivaDanceQueenElegantStride
Thu Jul 11 2024
The continued halving of the reward has been a significant aspect of Bitcoin's economics, aimed at maintaining scarcity and encouraging efficient mining.
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Nicola
Thu Jul 11 2024
Upon completion of Bitcoin's supply, it was determined that the reward system could undergo a transition.
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Isabella
Thu Jul 11 2024
As of 2021, miners are rewarded with 6.25 Bitcoins for each newly discovered block, a significant decrease from the initial reward offered.
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