What happens once the final Bitcoin has been mined?
Because of its finite supply, Bitcoin is considered a deflationary currency, as many of you are well aware. This means that, unlike fiat currencies, no central authority or power may decide to issue more bitcoins. The system is set up to support a total quantity of 21 million Bitcoins.
So date, around 18.5 million Bitcoins have been mined. Miners were originally paid with 50 BTC every 10 minutes. Every four years, this sum is decreased in half. The most recent Bitcoin halving occurred on May 11th, 2020, resulting in the current reward of 6.25 BTC/10 min. The procedure will be repeated until the final bitcoin is mined in 2140.
What happens when the final Bitcoin is mined?
Why would Bitcoin miners continue to assist verify transactions and add new blocks to the system in return for Bitcoin if the system no longer offers rewards? This is a legitimate concern that many beginner Bitcoin traders may have. Initially, a collapse appears unavoidable since miners no longer have a motivation to keep the system running. Fortunately, there is another way for rewarding miners.
Every Bitcoin transaction incurs a modest charge, which is also paid to miners. In reality, transaction fees are expected to become the primary motivator for miners far sooner than 2140. As the price of bitcoin rises, mining incentives grow progressively lower, and transaction fees increase in value.
It is also crucial to remember that Bitcoin has experienced several modifications in the decade or so that it has been in existence. New forks, methodologies, protocols, and other improvements may have an unforeseen impact on the entire system and even linked sectors such as Bitcoin futures trading. Phemex is looking forward to seeing what the future holds.