In just over a week’s time, the 19th million Bitcoin will be mined, according to most estimates.
Currently, the total number of mined Bitcoin is more than 18,980,000, which is over 90% of the total supply of Bitcoin.
When Bitcoin was first created by Satoshi Nakamoto in 2009, the founder put a hard limit on the total number of Bitcoins there could be in the world, which can never be more than just under 21 million.
The creator did this by putting a cap in the algorithm, meaning computers will no longer be able to solve the equation – or mine Bitcoin – once 20,999,999,9769 are mined.
It’s estimated that 900 new Bitcoins are mined per day. On average, 144 blocks are mined daily and each contains 6.25 Bitcoins.
No new Bitcoins will ever enter circulation after the mining of the last one.
I predict that when the 19th million BTC is mined in just a few days’ time, meaning that there will only be two million Bitcoins left, investor FOMO – the Fear Of Missing Out – will reach epic proportions for two key reasons.
First, it will give renewed urgency about the future of finance. It will act as a catalyst for investors to get involved in digital currencies, which are almost universally regarded as the future of money – even by institutional investors. Who would want their investments to be left in the past?
This landmark mining moment will bring this into sharp focus.
Around the world, in-the-know individuals and institutions are likely to be prompted to increase their exposure to Bitcoin, knowing the inherent value of digital, borderless, global currencies for trade and commerce purposes in our increasingly digitalised economies in which businesses operate in more than one jurisdiction. Investors will not want to miss out on the ‘early advantage’ edge as prices are set to skyrocket over the long-term.
Second, the historic moment will remind investors of another of Bitcoin’s unique selling points: its scarcity. This is especially important now as inflation, which is eroding people’s purchasing power, continues to run red-hot. And many experts argue it is here to stay.
Bitcoin is considered a good inflation hedge because of its limited supply, meaning that its value will remain steady over time. As such, investors will be seeking to use it to help make their wealth inflation-resistant.
We’ve seen investor FOMO before – typically when crypto prices are going through the roof – and it’s likely that it will once again kick in as we get to the point where just two million Bitcoins remain.
I share the view of the President of El Salvador, Nayib Bukele, who recently tweeted: “There are more than 50 million millionaires in the world. Imagine when each one of them decides they should own at least ONE Bitcoin.
“But there will ever be only 21 million #Bitcoin. Not enough for even half of them. A gigantic price increase is just a matter of time.”