"Bitcoin's supply is built into its code, making it very different from traditional money like dollars or euros. When Satoshi Nakamoto launched the network in 2009, the system was designed to release coins gradually. Miners earn new bitcoins as rewards for validating transactions and adding them to the blockchain."
"These rewards started at 50 BTC per block and are cut in half roughly every four years in an event called a 'halving.' The latest halving in 2024 reduced the reward to 3.125 BTC per block, slowing the pace of new BTC entering circulation."
"Another factor affecting BTC's supply is that some coins are effectively lost. Some early coins were sent to addresses with no private keys, and estimates suggest between 2 and 3.5 million BTC may never be recovered. That reduces the number of coins actually available to trade, increasing scarcity."
Bitcoin has surpassed 20 million coins mined out of its fixed 21 million total supply. The remaining coins will be released extremely slowly, with the last satoshis expected around 2140. Bitcoin's supply is hardcoded into its protocol, unlike traditional currencies. Miners earn rewards for validating transactions, starting at 50 BTC per block and halving approximately every four years. The 2024 halving reduced rewards to 3.125 BTC per block, slowing new coin creation to about 450 BTC daily. As rewards diminish, miners will increasingly depend on transaction fees. Additionally, between 2 and 3.5 million BTC are estimated lost or unspendable, further reducing available supply and reinforcing Bitcoin's scarcity and hard money characteristics.
#bitcoin-supply #mining-halving #cryptocurrency-economics #scarcity-and-hard-money #blockchain-technology
Read at Bitcoin Magazine
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