Nite
Valued Contributor
Bitcoin has been there since 2009, but since the price of Bitcoin has absolutely exploded in the last few years, it has been on the map of the average investors. It is up over 32500 since the year 2014. While a lot of investors have been excited over the prospect of getting rich through bitcoin investing, many also do not fully exactly understand what the crypto is or how it works.
While the mechanics of the Bitcoin operations can get a little confusing, the crypto is produced by the miners, but those miners produce it electronically rather than physically. Currently, miners gets reward which is 6.25 Btc's, but the amount is halved every four years.
Although, it may seem like there isn't any limit to the amount of Bitcoin that could be produced under the mining system. However, Satoshi Nakamoto, the presumed Bitcoin creator has kept the Bitcoin's supply to a fixed limit. The creator has put a maximum limit of 21 million on its supply, he did so to keep the Bitcoin valuable. And, the price of Bitcoin can increase in future because of its limited supply that makes it a scarce commodity.
With only limited number of Bitcoins left to be mined, the question arise about what will happen if the Bitcoin supply runs out?
While the mechanics of the Bitcoin operations can get a little confusing, the crypto is produced by the miners, but those miners produce it electronically rather than physically. Currently, miners gets reward which is 6.25 Btc's, but the amount is halved every four years.
Although, it may seem like there isn't any limit to the amount of Bitcoin that could be produced under the mining system. However, Satoshi Nakamoto, the presumed Bitcoin creator has kept the Bitcoin's supply to a fixed limit. The creator has put a maximum limit of 21 million on its supply, he did so to keep the Bitcoin valuable. And, the price of Bitcoin can increase in future because of its limited supply that makes it a scarce commodity.
With only limited number of Bitcoins left to be mined, the question arise about what will happen if the Bitcoin supply runs out?