The Bitcoin network has reached a remarkable milestone: 93% of the total supply of 21 million bitcoins has now been issued. This means that only 1.47 million bitcoins remain to be mined by the network participants, also known as miners.
This achievement is significant for several reasons. First, it shows the resilience and robustness of the Bitcoin protocol, which has been running continuously and securely since its inception in 2009.
Second, it reflects the increasing scarcity and value of bitcoins, which are becoming harder and more expensive to produce as the mining reward decreases over time. Third, it indicates the approaching end of an era, as the last bitcoin is expected to be mined around the year 2140, according to current estimates.
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What will happen when all bitcoins are mined? How will the network sustain itself without new coins being created? What are the implications for the price and adoption of bitcoins? These are some of the questions that many people are asking as the Bitcoin supply approaches its limit.
One possible answer is that the network will rely on transaction fees as the main source of income for miners. Transaction fees are voluntary payments that users attach to their transactions to incentivize miners to include them in a block.
Currently, transaction fees account for a small fraction of the total mining revenue, which is mostly composed of the block reward (6.25 bitcoins per block as of November 2023). However, as the block reward decreases every four years (the next halving is expected in 2024), transaction fees will become more important and eventually surpass the block reward.
Another possible answer is that the network will undergo changes or upgrades to accommodate new features or functionalities that could increase the demand and utility of bitcoins. For example, some proposals suggest implementing a second layer on top of the Bitcoin protocol, such as the Lightning Network, which could enable faster, cheaper and more scalable transactions.
Other proposals suggest increasing the block size limit, which could allow more transactions to fit in a block and reduce congestion and fees. However, these changes are not without controversy and trade-offs, and they require consensus among the network participants.
A third possible answer is that the network will continue to operate as it is, without major changes or disruptions. The limited supply of bitcoins could act as a deflationary force, increasing their purchasing power over time. The network could also benefit from network effects, as more users, merchants and institutions adopt bitcoins as a store of value, medium of exchange or unit of account. The network could also maintain its security and decentralization, as miners compete for the remaining coins and fees.
Whatever happens, one thing is certain: Bitcoin is a remarkable innovation that has challenged the conventional notions of money and finance. As it reaches its final stages of issuance, it will continue to fascinate and inspire people around the world.