Bitcoin has a total volume of 21 million, how much is left in circulation that hasn't been mined?

Bitcoin has a total volume of 21 million, how much is left in circulation that hasn't been mined?

Hey cryptocurrency enthusiasts, today Mike is going to take you through an important issue in the world of Bitcoin: the total volume of Bitcoin is capped at 21 million, so how much Bitcoin is left to be mined in the market? As the mining of Bitcoin becomes more difficult, this question not only affects the supply of the market, but also the future price trend and investment strategy. Let's take a closer look at the progress of Bitcoin issuance and see how the remaining Bitcoins are affecting the overall market.

Bitcoin's Total Volume and Issuance Mechanism

Bitcoin was originally designed to prevent inflation and its total mintage was limited to 21 million pieces. This is one of the core features of Bitcoin, and the most fundamental difference between Bitcoin and traditional money systems. The issuance of Bitcoin is based on a block reward system, whereby miners validate transactions by solving mathematical problems and are rewarded with a certain number of Bitcoins in return.

Initially, miners were awarded 50 Bitcoins for each successfully mined block. This award undergoes "halving" every 210,000 blocks, and is currently down to 6.25 Bitcoins. So, over time, new Bitcoins will be harder and harder to mine until the 21 million limit is reached.

Number of Bitcoins mined so far

As of December 2024, according to the Bitcoin Network, approximately 19 million Bitcoins have been mined and are in circulation. This means that nearly 90% of Bitcoins are currently in circulation, which is an important indicator for investors, as fewer and fewer Bitcoins remain, which could further push up demand in the market, and thus affect prices.

The rate of issuance of Bitcoin is not uniform, but decreases with each halving event. The halving event usually occurs every four years, which reduces the supply of Bitcoin in circulation every year, further increasing its scarcity. This is why Bitcoin is considered a form of "digital gold".

Remaining Unmined Bitcoin Volume

Based on current mining rates and block generation times, it is estimated that there are approximately 2 million Bitcoins yet to be mined. These 2 million Bitcoins will be released gradually over the next few decades, with the last Bitcoin expected to be mined around 2140, based on the design of the Bitcoin issuance.

This means that even though Bitcoin is approaching the 21 million unit limit in circulation, it will actually be a longer period of time before this limit is fully reached. This is a very important long-term indicator for participants in the cryptocurrency market, as the supply limit will become a significant driver of the Bitcoin price over time.

Bitcoin Supply and Demand

The relationship between supply and demand for Bitcoin is very simple: when demand rises and there are only a limited number of Bitcoins available for trading, the price will naturally be driven up. This is why Bitcoin is called a "scarce asset". With each "halving" event, the number of new Bitcoins added decreases, while demand does not decrease, but rather increases over time, which can exacerbate Bitcoin's price volatility.

Currently, Bitcoin trading volumes are growing globally, and more and more large organizations and corporations are beginning to view Bitcoin as a means of storing value. For example, many investment funds have included Bitcoin in their asset allocations, further increasing the demand for Bitcoin.

Factors Affecting Future Bitcoin Supply

Although the total amount of Bitcoin is fixed, future supply will still be affected by a number of factors. As technology advances, mining may become more efficient, meaning that miners will be able to obtain Bitcoin at a lower cost, which could affect price fluctuations in the market. Upgrades to the Bitcoin network (e.g., Flash, SegWit, etc.) will also affect the liquidity of Bitcoin, which in turn will affect market demand.

The legal and policy environment for Bitcoin is also an important factor. If governments change their regulatory policies regarding Bitcoin, this may affect the amount of Bitcoin in circulation in the market. For example, if certain countries decide to ban the use of Bitcoin or restrict its trading, this will directly affect the demand and supply of Bitcoin.

Bitcoin Price and Future Predictions

The price of Bitcoin tends to show a high degree of volatility due to its supply ceiling and the impact of the halving event. Historically, each halving of Bitcoin has been followed by a significant price increase, which has attracted a large number of investors to the market.

Nevertheless, the future price of Bitcoin is still full of uncertainty. Its price is affected by multiple factors such as market sentiment, technological advances, policies and regulations. Therefore, many analysts are cautious about the price forecast of Bitcoin and consider it a high-risk, high-return investment tool.

Frequently Asked Questions Q&A

Q1: Will the price of Bitcoin go up because of the amount of Bitcoin left?

A1: Yes, the smaller the number of spare Bitcoins, the higher the theoretical upward pressure on the price of Bitcoins as demand increases. This is driven by the scarcity of Bitcoin and the reduction in supply after each halving event.

Q2: Why is the total amount of Bitcoin set at 21 million?

A2: Bitcoin's founder, Satoshi Nakamoto, designed the 21-million-unit limit to avoid inflation and ensure the currency's scarcity. This was designed to make Bitcoin a reliable store of value.

Q3: Will Bitcoin stop running in the future when it reaches its total volume limit?

A3: No. Even though the total volume of Bitcoin will be capped in 2140, the Bitcoin network will still be up and running, and the main income for miners will come from transaction fees, not block bonuses.

This article details the total amount of Bitcoin, the current amount in circulation, the remaining unmined Bitcoin, and its impact on the market. It helps you better understand the dynamics of Bitcoin's supply and demand, and provides some thoughts on future trends. If you are interested in investing in Bitcoin or other cryptocurrencies, remember to stay tuned to the market dynamics and technological developments!