Bitcoin’s finite supply has been a fundamental characteristic of its design since its creation by Satoshi Nakamoto. The protocol is designed to cap the total supply at 21 million bitcoins. As of 2024, over 19 million bitcoins have already been mined, but the process of mining the remaining few will stretch over the next century. This article will explore when the last bitcoin is expected to be mined, what will happen after all bitcoins are mined, and how the network might evolve in response to the changing landscape.
Quick Takeaways
- The final Bitcoin is projected to be mined in 2140 due to Bitcoin’s halving schedule, which reduces the mining rewards every four years.
- After all Bitcoins are mined, miners will rely solely on transaction fees to maintain the network and verify transactions, which may shift incentives in the system.
- Network security after 2140 will depend on transaction fees and ongoing advancements in mining technology and energy efficiency to maintain a stable and secure blockchain.
How Many Bitcoins Are There Right Now?
As of September 2024, there are currently over 19.8 million Bitcoins in existence, which means over 94% of all Bitcoins have been mined.
Of course, some of those Bitcoins have been lost over time. Stories of hard drives with thousands of Bitcoin lay in landfills around the world, with little to no chance of being accessed ever again. According to blockchain data firm Chainalysis, it is estimated that over 3.7 million Bitcoins (over 20% of total supply) have been lost over time.
How The Bitcoin Halving Works
Bitcoin mining operates on a schedule of “halving” events, where the rewards given to miners for processing transactions are cut in half approximately every four years. This halving is programmed into the Bitcoin network to control the rate of new bitcoin creation. When Bitcoin was first launched in 2009, the reward for mining a block was 50 bitcoins. After the most recent halving in 2024, this reward stands at 3.125 bitcoins per block.
When Will the Last Bitcoin be Mined?
The next halving, expected to take place in 2028, will reduce the reward to 1.5625 bitcoins per block. This process will continue until around the year 2140, when the reward will become so small that effectively no new bitcoins will be mined. At that point, the total supply will be locked at 21 million coins.
Learn more about the Bitcoin Halving 🡢
Why 2140? The Math Behind Bitcoin’s Supply
The timeline for mining the last bitcoin hinges on a combination of factors, but the halving events are the main driver. Each halving reduces the supply of new bitcoin entering circulation. While we’re mining fewer bitcoins each year, the decreasing rate means the time between now and 2140 will be stretched out.
By design, Bitcoin’s block generation time is approximately 10 minutes. This means that one block is added to the blockchain roughly every 10 minutes, and with each block comes a reward in bitcoins, which halves every four years.
You can see in the infographic below how the Bitcoin halving has affected the number of Bitcoin produced per block.
With each halving, the amount of new bitcoin created diminishes, and by the 33rd halving (projected to occur around 2140), the reward will effectively be zero.
What Happens After All Bitcoins Are Mined?
One of the biggest questions surrounding Bitcoin’s future is what happens after all 21 million bitcoins are mined. Since miners play a critical role in maintaining the security and integrity of the Bitcoin network by verifying transactions, how will they be incentivized when there are no more new Bitcoins to mine?
Transition to Transaction Fees
While miners are currently rewarded with newly minted bitcoins, they also earn fees from the transactions they process. After all bitcoins are mined, miners will rely entirely on transaction fees for revenue. This shift could significantly change the dynamics of the network.
Some worry that the reliance on transaction fees could lead to higher costs for users. If fewer miners continue to support the network due to lower profitability, it might lead to slower transaction times and increased fees as demand for processing space grows.
However, proponents argue that Bitcoin’s growing adoption and increasing transaction volume will naturally create a robust fee market. As more people use Bitcoin, demand for transaction processing will rise, potentially offsetting the loss of mining rewards.
Security Concerns
Bitcoin’s network security is based on the assumption that miners have sufficient financial incentive to continue securing the network. If mining becomes unprofitable due to the absence of block rewards, some fear that the network could become more vulnerable to attacks.
Bitcoin’s security is built around a concept called “proof of work,” where miners expend energy to solve complex mathematical problems, ensuring that no single party can take control of the network. If miners drop out due to reduced incentives, it could become easier for malicious actors to launch attacks, such as a “51% attack,” where a single entity gains control of more than half of the network’s computing power.
To address these concerns, some Bitcoin developers are exploring alternative security models, such as improvements in layer-2 solutions like the Lightning Network, which could alleviate transaction volume issues on the main chain.
The Deflationary Nature of Bitcoin
One of Bitcoin’s defining characteristics is its deflationary nature. Unlike traditional currencies, which can be printed in unlimited quantities by central banks, Bitcoin has a fixed supply. Once the 21 millionth bitcoin is mined, no new coins will be created, making it one of the scarcest assets in the world.
This scarcity is part of what drives Bitcoin’s value proposition. As demand for Bitcoin increases and supply remains fixed, economic theory suggests that its price should rise. This deflationary pressure makes Bitcoin an attractive store of value for many investors, often compared to “digital gold.”
Bitcoin’s divisibility also plays a crucial role in maintaining its utility as a currency. Even though only 21 million bitcoins will ever exist, each bitcoin can be divided into 100 million units, known as “satoshis.” This means that even if Bitcoin’s price were to rise significantly, people could still transact in small fractions of a bitcoin.
Learn more about Satoshis 🡢
Impact on Bitcoin’s Market Dynamics
As the last bitcoin approaches, market dynamics could shift significantly. Many analysts predict that Bitcoin’s price will continue to rise as the supply becomes increasingly scarce. According to Investopedia, this scarcity is expected to drive up demand, especially among institutional investors and governments seeking to hold Bitcoin as a hedge against inflation and currency devaluation.
However, predicting the price of Bitcoin in 2140 is nearly impossible due to the inherent volatility of cryptocurrencies and the rapidly changing global financial landscape. Factors such as technological advancements, regulatory changes, and competition from other cryptocurrencies could all impact Bitcoin’s future price trajectory.
Energy Efficiency and Technological Improvements
One of the ongoing debates in the Bitcoin community is its environmental impact. Mining Bitcoin requires significant amounts of energy, leading to concerns about its sustainability in the long term. However, technological improvements and shifts toward renewable energy sources could mitigate these concerns.
Several mining operations have already begun transitioning to renewable energy sources, such as solar, wind, and hydroelectric power. These changes could help ensure that Bitcoin remains sustainable even as mining becomes more challenging and less profitable after the 21 millionth bitcoin is mined.
Additionally, improvements in mining hardware and techniques could reduce energy consumption while maintaining the security and integrity of the network. As mining technology evolves, it’s possible that future innovations will address some of the environmental concerns associated with Bitcoin mining.
The Future of Bitcoin Mining
The future of Bitcoin mining will likely be shaped by a combination of economic, technological, and regulatory factors. While the end of block rewards in 2140 marks a significant change for the network, the Bitcoin community has proven resilient and adaptable over the years.
Miners may increasingly rely on transaction fees, layer-2 solutions like the Lightning Network could alleviate congestion on the main blockchain, and innovations in mining technology may help keep the network secure and energy-efficient. Additionally, Bitcoin’s decentralized nature means that any changes to the protocol would require broad consensus among participants, ensuring that no single entity can drastically alter the network’s trajectory.
Bitcoin’s Journey to 2140 and Beyond
While the year 2140 is still far in the future, the approaching end of Bitcoin mining raises important questions about the network’s long-term sustainability, security, and usability. As block rewards diminish, transaction fees will play a more prominent role in incentivizing miners, and Bitcoin’s deflationary nature may continue to drive its value as a scarce digital asset.
Despite concerns about transaction fees, security, and environmental impact, the Bitcoin community remains optimistic about the future. With advancements in technology, growing adoption, and a strong decentralized ethos, Bitcoin is well-positioned to continue thriving long after the last bitcoin is mined. The road to 2140 may be long, but the journey promises to be as revolutionary as the inception of Bitcoin itself.
Common Questions About Bitcoin Mining
When will the last Bitcoin be mined?
The last Bitcoin is expected to be mined around 2140 due to Bitcoin’s halving process, which reduces mining rewards approximately every four years.
What happens after all Bitcoins are mined?
After all 21 million Bitcoins are mined, miners will earn revenue solely from transaction fees instead of block rewards, ensuring the network continues to operate.
Will Bitcoin mining stop after 2140?
No, Bitcoin mining will continue, but miners will only process transactions and earn fees rather than minting new coins.
When is the next Bitcoin halving?
The next Bitcoin halving is expected to occur in 2028, following the last halving in April 2024. This halving will further reduce the block reward from 3.125 Bitcoins per block to 1.5625 Bitcoins per block.
How does halving affect Bitcoin mining?
Halving events reduce the reward miners receive for mining a block, making Bitcoin scarcer over time and slowing the release of new coins into circulation.
Can the Bitcoin supply be increased beyond 21 million?
No, Bitcoin’s supply is hard-capped at 21 million by its underlying protocol, and this limit cannot be changed without a consensus among all network participants.
