More than 20 million Bitcoin have been mined as of Tuesday, marking a significant milestone in the history of the cryptocurrency. The achievement means over 95% of the 21 million Bitcoin programmed to exist are now in circulation, according to data compiled from multiple sources.
The final million Bitcoin are expected to be mined over the next 114 years, a drastically slower pace than the initial years of the cryptocurrency’s existence. Bitcoin’s creation is governed by its underlying code, which dictates a gradual release of coins. Miners are rewarded with recent Bitcoin for validating transactions and adding them to the blockchain, a process that began in 2009 with a reward of 50 BTC per block.
This reward system is designed to halve approximately every four years, a mechanism known as “halving.” The most recent halving, which occurred in 2024, reduced the reward to 3.125 BTC per block, effectively slowing the rate at which new Bitcoin enter the market. Currently, miners produce around 450 BTC per day, a substantial decrease from the pre-2024 halving rate, according to reports.
As the block reward diminishes, miners will increasingly depend on transaction fees to maintain their operations. This shift could lead to higher costs for sending Bitcoin but is expected to ensure the network’s continued security and functionality even after the last Bitcoin is mined around the year 2140.
Beyond the programmed scarcity, a portion of existing Bitcoin is effectively lost, further constricting the available supply. Estimates suggest between 2 and 3.5 million BTC are irretrievable, either due to lost private keys or being sent to addresses from which they cannot be accessed. The very first block of Bitcoin, known as the genesis block, contains 50 BTC that are permanently unspendable, adding to the total number of coins removed from circulation.
Despite the predictable supply schedule, Bitcoin’s price remains subject to market forces, investor sentiment, and broader economic conditions. As of Tuesday, Bitcoin was trading between $69,000 and $70,000, demonstrating the volatility inherent in the cryptocurrency market. Analysts suggest that Bitcoin’s fixed supply and transparent issuance schedule could provide a unique advantage over traditional currencies, particularly in an environment of unpredictable monetary policies and inflation concerns.
The evolution of Bitcoin from a nascent experiment to a scarce digital asset is now firmly underway. While short-term price fluctuations will likely continue to mirror global economic trends, the cryptocurrency’s inherent scarcity is now a fundamental aspect of its design, shaping its long-term trajectory as a form of digital money.
