Posted: 01.07.2021 | 09:41
What Will Happen When All Bitcoins Are Produced?
Bitcoins are a guarantee of the reward that miners receive in exchange for solving blocks on the Blockchain network. When Bitcoin was first created, it was believed that the supply of Bitcoin would be limited to 21 million according to the agreed protocol. The reward is split in half every time 210 thousand blocks are mined. This means that the last Bitcoin will continue to be mined until 2140.
At this point, it can be concluded that by the year 2140, the new Bitcoin will no longer be in circulation. Of course this is possible if Bitcoin software and protocol do not change. Once the last Bitcoin is mined, miners will no longer be able to be rewarded with new Bitcoin for confirming and securely processing transactions.
So how will Miners be encouraged to confirm transactions?
Even if miners no longer have the ability to create new Bitcoins, they will still be needed to confirm transactions. Miners will continue to charge transaction fees to confirm transactions, and their investors will continue to pay small fees.
The transaction fee is far less than the value of creating a new block, viewed today, and mining may not be profitable in this case. In this case, it is not difficult to predict that the said transfer fees may increase due to market rules.
It is possible that mining technology can improve and its cost can be reduced with new technological tools. In this case, it can be ensured that transaction costs remain low.