Bitcoin has crossed a major milestone and this time it relates to its supply. Bitcoin’s total circulating supply has crossed a rock-solid landmark of 18.5 million coins. This means that 88% of the total supply of coins has already been mined.
The genesis block considered the first Bitcoin block was mined by Satoshi Nakamoto the pseudonymous creator of the world’s first and the largest cryptocurrency back in 2009. This means that there are less than 2.5 million BTCs now left or about 11.9% of the total Bitcoin to be generated. Its Coinbase criterion now has the Times headline about Alistair Darling, the ex-British Chancellor, considering a second bailout for banks. Another striking thing about Block 0 is that 50 BTC reward subsidy if at all received cannot be spent.
Bitcoin crossed its first million in circulating supply in June 2009 and at that time, the milestone wasn’t a big achievement because Bitcoin had not made it that big. It was then listed only on one exchange. But in September 2012, Bitcoin crossed the 10 million mark before its fourth-year reward cut which took place in November the very same year. This eventually reduced the subsidy from 50 BTC to 25 BTC.
Only 21 million BTCs are going to be produced in total, already about 18.5 million in circulation. This shows a difference of about 2.5 million BTCs which are left to be produced. Chainanalysis, a popular crypto analytics firm wrote a report explaining how most BTCs are held by those who take it to be digital gold. It stated:
“This digital gold is supported by an active trading market for those who prefer to buy and sell frequently. The 3.5 million Bitcoins used for trading supplies the market and in interaction with the level of demand, determines the price. With more people looking to trade Bitcoin, which is only becoming scarcer following the recent halving.”
The fourth area of the flagship cryptocurrency kicked off on May 11th when its 630,000th block got mined. Miners now get 6.25 BTC for each block they solve. As the new issuance of BTCs gets halved every year, the last BTC is expected to be mined until 2041 and no new Bitcoin can be mined after that year. About three months ago Nairametrics wrote on how Bitcoin was becoming difficult as about 60% of BTCs in circulation were held by individuals and business entities that have never sold more than 25% of BTCs they have been holding as long-term investments.
The digital asset management company Grayscale has apparently increased its Bitcoin position by 17,100 BTC over the last week. It continues to dominate over Bitcoin miners owning newer coins coming in circulation.
Back in August, Kevin Rooke tweeted about its Bitcoin buying behavior. It makes a comparative note on Bitcoin bought by Grayscale and Bitcoin bought by Microstrategy.