Has the World Almost Run Out of Bitcoin?
Well, the good news is that 90 percent of the world’s bitcoin supply is in circulation. The bad news is… 90 percent of the world’s bitcoin supply is in circulation.
Almost All the Bitcoin Has Been Extracted
It was announced that close to 100 percent of the total bitcoin in existence has been mined and is now making its way between wallets and exchanges. This is both a positive and a negative for many reasons. It is positive because it means more and more people are buying bitcoin. They see it as a top asset to own and a major portfolio diversifier. The currency has become much more mainstream in recent years, largely because of its growing price, and it looks like it is now being accepted more than ever.
For diehard traders and investors, this should read as “mission accomplished.” One of the big goals behind bitcoin was to make the asset and its crypto counterparts legitimate and well known amongst the public. This has seemingly occurred, and the fact that so much of the asset has been placed in digital wallets is certainly a big step forward.
However, there is also a problem in that bitcoin is a finite currency. In other words, it is limited in number, and once we hit a certain figure, the currency will not be minted any further. It is not like fiat, which is printed regularly. This, itself, is something of a big problem we are dealing with nowadays given that inflation is at an all-time high thanks to politicians that seem to believe simply printing money left and right will somehow finance the ongoing fight against COVID.
Bitcoin does not make room for inflation given that it cannot be created beyond a certain point. We are nearing that point now, and this is a scary thought for many traders around the world.
It’s been known for many years that bitcoin only has a limited supply of roughly 21 million units. Thus far, more than 18 million have been placed into circulation, which leaves less than three million to go. While it was initially felt that 2140 would be the year in which the final bitcoin is extracted, could it be possible that we somehow reach that point much sooner than anticipated?
How Much Time Do We Really Have Left?
90 percent is a big number and given that bitcoin only emerged about 12 years ago suggests that a lot of money can be made and extracted in a relatively short amount of time. 90 percent in 12 years? Heck, there’s no reason to believe that an additional ten percent cannot come into circulation in less than 119.
Once all the world’s bitcoin is mined and owned, there’s no saying how valuable it will be. It could be that it becomes very valuable, and anyone who owns it is super wealthy. However, it could also lose all its value instantly in that what made it special was the fact that there was always a little bit left to extract.
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