Bitcoin is the most significant speculative and scarce investment asset. According to some rich sources, bitcoin is virtual gold as, just like gold, bitcoin is correspondingly one of the scarcer investment assets. Moreover, similar to gold, the process of getting new bitcoin units is correspondingly mining.
The so-called inventor of bitcoin set up the complexity of bitcoin so that bitcoin has a limited supply. The finite supply of bitcoin demonstrates that 21 million units are present. Out of these 21 million, bitcoin miners have already mined 18.6 million bitcoin units.
The primary purpose of bitcoin mining is to verify the bitcoin transactions and bring new bitcoins to existence. Websites like the WWW.Bit-IQ.io can help you get profitable results in your bitcoin trading venture. However, bitcoin units as a block reward are the only reason Bitcoin miners invest their computing resources in mining.
The future of bitcoin mining is very suspicious, as, in 2140, bitcoin miners will mine the last bitcoin unit ever. Crypto enthusiasts wonder what will happen to bitcoin once bitcoin miners mine the last ever bitcoin unit. So without wasting any further ado, let’s find out the future of bitcoin mining.
What is Bitcoin Mining?
Before acknowledging the future image of bitcoin mining, you should know what bitcoin mining is. Bitcoin mining is the action of validating bitcoin transactions by involving computers. After verifying these transactions, the bitcoin algorithm rewards bitcoin miners with a block reward. The block reward of bitcoin mining includes a specific number of bitcoins alongside the transaction cost.
Bitcoin miners can only verify the transactions if they solve the math puzzle in under 10 minutes. Proof of work defines that every miner has to solve a math puzzle earlier than others to get the block reward. If a miner fails in verifying these transactions, the miner has to start over the entire process.
In a nutshell, bitcoin mining is adding new bitcoin units by verifying the bitcoin transactions. To verify the transactions earlier than other miners, miners must invest in robust bitcoin hardware or application-specific integrated circuits. All the more, bitcoin miners can verify the transaction with the help of a graphic processing unit.
What is the future of bitcoin mining?
As mentioned ahead, there are only 21 million bitcoin units, and out of these 21 million bitcoin units, 18.6 million units are already present in the market. However, out of these 18.6 million bitcoin units, merely 4 million bitcoin units are present in the market, demonstrating the bullish aspect of bitcoin.
Moreover, a leap year event named bitcoin mining declines the block reward of bitcoin mining roughly after four years. In a nutshell, the supply of bitcoin units is constantly declining, and following the trends of bitcoin halving, bitcoin miners will be able to mine the last ever bitcoin unit in the year 2140.
The current block reward of bitcoin mining is 6.25 units. Next, bitcoin halving will take place in the year 2024, which decreases the block reward of bitcoin mining by 3.25 units. Thus, the difficulty of bitcoin mining is constantly increasing, but the store value of bitcoin is also increasing alongside its difficulty.
Will the concept of bitcoin mining end after 21 million bitcoins?
You are familiar with how every miner performs bitcoin mining to make money by selling the block reward. But, if bitcoin miners will mine each bitcoin unit, what will act as the block reward? Bitcoin mining is the process of validating bitcoin transactions simultaneously alongside adding bitcoins to circulation.
If there is no block reward, Bitcoin miners will not verify the transaction. However, bitcoin mining’s block reward does not merely contain bitcoin units as the block reward but also the transaction cost once bitcoin miners mine 21 million bitcoin units.
The Bitcoin algorithm rewards bitcoin miners with the transaction cost. Undeniably block reward as the transaction cost is significantly less, in contrast, to block reward as bitcoin, but transaction cost as block reward will be much more frequent. According to the inflation rate, the transaction cost will increase to thousands of dollars.
The portion mentioned above is everything you should know about the future of bitcoin mining.