In this post we will talk about Bitcoin, what will happen to it when all 21 million Bitcoins mined.
As we know that Bitcoins' supply is limited to 21 million, means only 21 million Bitcoins can be there in existence. New Bitcoins are generated after every block of Bitcoin is mined and the miner gets block reward in form of Bitcoins in return. The Bitcoin's block reward started from 50 BTC per block mined and the current block reward is 12.5 BTC per block mined.
According to the Bitcoin's algo, block reward becomes half after every 210,000 blocks mined which on an average takes 4 years to mine, means Bitcoin's block reward becomes half after every 4 years. According to calculation the last Bitcoin will mined in the year 2140.
So 122 years from now last Bitcoin will be mined. Now what changes will occur after all Bitcoins gets mined, the major impact would be on the miners as their will be no block reward after all Bitcoins gets mined so the miners has to rely on the transaction fees. But the question is does the transaction fees would be enough to keep the miners running along with the same power consumption as now.
As the technology is advancing day by day, making more efficient and power saving ASIC chips to be used in the miners but we have to see that it would be enough to run a miner and depend only on the transaction fees. As Bitcoin's one of the advantage is its low transaction fees. As according to the demand and supply rule the price of Bitcoins will continuously rise, means the transaction fees will also rise, to maintain the advantage of low transaction fees the block size of bitcoin can be increased in the future to process more transaction in one block. If this happens then eventually the transaction fees will remain less now in that case we have to see that the hardware would become such efficient in the future that the miner can only rely on the transaction fees.
If that doesn't happen then all this led to a decrease in the number of miners, a centralization process of the Bitcoin network and a number of side effects on the Bitcoin's ecosystem.
Can all this will lead to the death of Bitcoin.
What do you think about this let me know in the comments below.
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The Satoshi's vision for Bitcoin in the long run was widespread adoption so that with rising Bitcoin price, the transaction fees are sufficient enough for the miners after the 21 million are mined in 2140. The adoption is not quite there but the hardware for mining are getting better with time. We have about 122 years in hand before the last Bitcoin is mined. Anything can happen in that time. So, I think it can turn around with global tensions rising, corruption, banking failures, etc. The miners are futuristic in my view. That is the key to maintaining the Bitcoin network.
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