80% Of All Bitcoins Have Already Been Mined...

Almost exactly 9 years after the first were 'mined', January 13th marked an important milestone for cryptocurrencies. 16.8 million bitcoins (BTC), or 80 percent of the entire Bitcoin supply, have now been mined.

 

https://www.zerohedge.com/sites/default/files/inline-images/20180115_btc1.png

Source

As CoinTelegraph reports, this means only 4.2 million bitcoins, or 20 percent, are left to mine until Bitcoin’s 21 million supply cap is reached.

https://www.zerohedge.com/sites/default/files/inline-images/20180115_btc2.png

BTC contains the 21 mln cap built into its protocol by Satoshi Nakamoto, first mentioned in their 2008 White Paper, as a way to introduce digital scarcity to cryptocurrency. With such a cap in place, the more bitcoins are mined, the more scarcity is produced on the market.

Scarcity arguably creates demand, which in turns makes the coins more valuable. Once 21 million bitcoins have been mined, it will become even harder to obtain them, also potentially making each coin more valuable.

Miners currently receive a 12.5 BTC reward for every block that they mine, but Nakamoto’s protocol also requires that the mining reward is halved every 210,000 blocks, or approximately four years. The next miner halving will take place within two years, approximately in early June 2020 depending on hashrate, bringing the rewards down to 6.25 BTC per mined block.

Not every digital currency is mineable like BTC. Some cryptocurrencies are created with the entire supply released all at once, in which case the total supply is either held or in circulation and there is no way to “mine” or mint new coins.

Some examples of non-mineable digital currencies are Ripple, IOTA, NEM, NEO, Qtum, Omisego, Lisk, Stratis, Waves, and EOS.

Increasing supply

Skeptics have proposed that it is theoretically possible to increase Bitcoin’s 21 million capped supply of Bitcoin via a 51 percent or a Sybil attack, but so far neither of these manipulations has proven feasible in the case of BTC.

Altcoin Krypton, which is based on Ethereum, experienced a 51 percent attack in August 2016, but no other such attacks have taken place since then.

Comments

giovanni_f vato poco Tue, 01/16/2018 - 03:27 Permalink

whoever he was, he was one of the nerds who invented s.th. that changed the way how the world looks at things. Profoundly. I am sure he didn't foresee this. The jury is still out but this guy was/is one of the great inventors in our times. The majority if not all cryptocurrencies will go down the drain rather sooner than later (mainly because  of .gov und wallstreet pedofiles) but that will have only marginal impact. the blockchain is here to stay.

Btw, Bitcoin is as digital as the US$, suck it up pussies.

In reply to by vato poco

fx giovanni_f Tue, 01/16/2018 - 03:54 Permalink

Of course, most Bitcoins mined haven't been sold into the market yet, as can be easily seen when looking at the major mining pools' wallets. But they have to pay their bills with fiat, not BTC, so even if they are intending to HODL, they have to sell parts of their treasure, no matter what. The higher the mining costs, the higher the amount of fiat they have to rake in. So yeah, I think the author should rethink his supply-demand picture...

 

Looking at this morning's (Europe) carnage in the crypto space, I am inclined to say that episdoe may be over sooner than I had thought. Which would be a pity. But maybe cryptos get another upshot in spring. But somehow I doubt it, upon looking at those charts....

In reply to by giovanni_f

mtl4 fx Tue, 01/16/2018 - 08:22 Permalink

Not sure I understand how it works because what if the cost of hashing (hardware/electricity) exceeds the reward value for the mining (ie BTC received for mining)?  If the coins don't continue to go up in value then is there some additional fee folks will have to pay to keep the network going (like an increased transaction fee) or does it just slow to a crawl?  Seems like a serious flaw but not sure.

In reply to by fx

1 Alabama fx Tue, 01/16/2018 - 08:26 Permalink

Cept another guy said the same thing in 2015, so, 22 million coins minus unknowable amount of lost coins, 22 transactions per minute, more mining equipment being made and more coins being mined each and everyday, you do the math. I got south Korea, during the Olympics, and off the buildings myself. 

Wrong guy

In reply to by fx

RAT005 markmotive Tue, 01/16/2018 - 00:01 Permalink

ACP, what do you think about the problem that when the crowd starts throwing in the towel and more sales beget more sales (which also requires more mining) as in a typical flight to zero, BTC has the problem that you can't sell unless someone is willing to pay the expense to run the mining machine to validate your exit (sale)?  There has never been anything like this.  The cost to use the depreciating asset is rising while the value of the asset is falling.

What happens in the situation?

In reply to by markmotive

rosiescenario SweetDoug Tue, 01/16/2018 - 13:31 Permalink

...jeez, you do not have to go to Canada....look at the current CA situation, now down to about $300/lb from $900. Too many entered the 'gold rush' growing it. I expect further price declines this year until growers are forced out of business leaving only the ones who have deep enough pockets to weather the storm. No money to be made in growing.

In reply to by SweetDoug

Moe-Monay CrazyCooter Mon, 01/15/2018 - 23:38 Permalink

sheikurbootie

I will again offer to accept any and all Federal Reserve notes that have been created out of nothing and are exactly the same as BTC in that regard.  Should you not send then I will assume you are just talking shit.

Who am I kidding. You don't know what you are talking about or you would not trip over your own thoughts to badly.  If anyone wants to make a case against BTC please do a better job and not waste our time like this lame brain.

In reply to by CrazyCooter

ebworthen Moe-Monay Tue, 01/16/2018 - 00:39 Permalink

Just wait for the next "fork", what will it be called?  SedgeCtrl+Phogx2?

"80% of Bitcoin has been mined..."  Well...until Bitcoin 2.0!

Never-mind that crypto is the currency of the dark web!

Don't  tell yourself only 1% of people know WTF it is!

It's going to the moon alongside DOW 40K!

It's not the everything bubble, it's Gold!

Oh wait...

In reply to by Moe-Monay

CrazyCooter tmosley Mon, 01/15/2018 - 23:47 Permalink

Since I am up ... I agree.

But, at the end of the day, a system that matches producers to other producers - is what is going to work. Honestly, I don't know what that really looks like in this day and age. Open to some serious thinkers who aren't peddling bullshit (I would wager a lager it is all bullshit).

Gold worked for a long time because it was a genuine hard limit (physics) and fit the times/technology.

Fiat fails because it has no limits - the problem is humans (isn't it always?).

Is that (or this) correct punctuation? (Only English should respond - thanks - and please be dry and witty)

Crypto seems to have a limit - but there are an infinite number of games in town. So, it isn't BitCoin the IDEA - it is BitCoin the SYSTEM.

Right.

And, at the end of the day, the folks who actually produce stuff - need to buy resources and labor and have a margin. Or you don't get your "improved" stuff, your "value added" stuff, or, frankly, your "stuff".

And a corruptible (replaceable system) isn't going to work out in the long run.

Carry on!

Or have a pint - I am opting for a pint.

Regards,

Cooter

In reply to by tmosley

Mr_Potatohead tmosley Mon, 01/15/2018 - 23:58 Permalink

" Gold standard ain't coming back. "

That's correct.  But with the recent addition of China's currency to the SDR basket and calls to add gold to that basket, something akin to "FreeGold" becomes a very real possibility at the CB level.  (Sorry, but no FreeGold or SDRs for the common people - see ref 3 below).  It wouldn't be hard to have the new local currencies be gov't controlled cryptocurrencies. 

https://www.bullionstar.com/blogs/bullionstar/introducing-freegold/

https://www.zerohedge.com/news/2015-04-12/gold-backed-sdr-quite-likely-…

https://www.bis.org/publ/bppdf/bispap58h.pdf

https://www.imf.org/external/np/exr/facts/sdr.htm

In reply to by tmosley

CrazyCooter Mr_Potatohead Tue, 01/16/2018 - 00:45 Permalink

Correct me if I am wrong ...

SDRs are essentially a mechanism by where a country (with a currency in the basket) can contribute and convert their currency into another currency (in the basket) ... with penalties and interest. The unit of account is an SDR. Sort of like instead of 1 dollar equaling 1.2 pounds at a single conversion fee, it is 1 dollar equals 1.1 SDR at 1.2 pounds with some carry cost depending on who initiated the transaction (with the middle man blowing it on hookers and blow as per custom).

It solves a short term problem of liquidity in a foreign currency.

It does not solve the long term problem of insolvency.

Thank god the system (globally) isn't insolvent!

I suppose, if I have to go there, if EVERY currency in the basket was insolvent, they could all borrow from each other in proportional quantities. But, this would inflate hookers and blow - the final bubble - as it would all have to be spent before it is gone.

And ... we are back to precisely the point I made above.

Regards,

Cooter

P.S. Rules will get changed - so book your bets now!

In reply to by Mr_Potatohead

Mr_Potatohead CrazyCooter Tue, 01/16/2018 - 06:14 Permalink

That's the basic idea.

The SDR is a global fiat currency with a twist.  Rather than having one country calling the shots and having its currency screwed by Triffin's dilemma, the SDR allows a small club of global puppet bankers to control a global fiat currency.  The average citizen still gets screwed because it isn't backed by anything at his/her level.  But from the CB and political points of view, it allows the current game to continue.  Adding gold to the SDR basket and allowing only CBs to convert SDRs into the basket components insures that all CBs devalue their currencies at the same rate.

Here's some interesting reading about the early days of the SDR's creation --> https://www.amazon.com/Rules-Game-Evolution-International-Monetary/dp/0…

Everything seems to be in place for this to happen.  All they need for implementation is a good global crisis.

In reply to by CrazyCooter