Topic: Bitcoin limit supply - page 2. (Read 603 times)

According to me, fiat currency is showing it's flaws at regular intervals and that is making more people to believe that an alternate system of payment is needed.
Though bitcoin is not perfect but it still shows how people can actually have a control on their money and literally own their wealth.
Bitcoin is a gateway to an alternate payment method and this is enough reason why I can say that it will continue to exist forever.
People who can afford it will hold it while other alternate currencies would be used for daily payments.
So even after all the bitcoins are mined people will still use it and miners will rely on the mining fees for rewards.

This is where the laws of economics apply. with the increasing scarcity of bitcoins to be traded while demand increases, it will further increase the price, and of course this limited supply I think will only affect the price, and of course crypto currency is not only bitcoin. and of course if developments are in accordance with our vision for the future, then we are very suitable for investing, as many people are doing today.

The supply which Satoshi set up was only 21 Million bitcoins and it cannot be increased by any means but with time people lost their keys to coins and those coins are out of supply so we can say that there will never be 21 million coins in circulation.

This topic has been discussed many times and we all know the transaction fees will be enough for the miners by then so the security will be maintained and there will be usage if we see from the current time but can't say exactly what will happen in century.

Once the miner has generated all the coins, there will be no more bitcoin to be mined. Additional supply can only occur if the bitcoin protocol changes and allows for a much larger supply. Otherwise, the maximum limit will remain 21 million bitcoin.

For investors, this is great news because bitcoin will become scarce and bitcoin is a highly volatile asset—with extreme price increases and dramatic declines. This will be a great opportunity for potential investors to enter the market and try to invest.

Apparently, this is a question that have been asked too many times with regards to OP but, I won't blame you, your new here from the look of it but to avoid creating threads that have been long discussed before, you might want to search it first and then, you can go ahead to create a thread when not found.

Haven't said that, with the supply limit being met doesn't necessarily mean the end of bitcoin. Let's take a page out to gold for example (I know these two @gold @Bitcoin don't go together but for the sake of my illustration, I'll go with it for an analogy). Gold has an estimated supply althogh, discoveries occasionally comes up but let's say that be the case, it hasa definite supply. With gold supply going out, does that means the end for gold? Obviously not. I think the same applies for bitcoin.

We could expect it to loose much of its volatility but definitely, its bound to remain in existence.

There are millions of Satoshi in one Bitcoin and are in bits so even if the total 21 million Bitcoinhase been mined, the total buts will only increase in price which gives Bitcoin an infinite total supply. But you should also understand that Bitcoin, if the demand increase so the scarcity will inflate the price.

When Bitcoin can no longer be mined because all 21 million coins have been mined, first, I believe Bitcoins that will be in circulation won't be up to 21 million coins when we consider the hundreds of thousands of Bitcoin that it's owners have lost access to, so this I believe makes Bitcoin even more scarce, and since there will be no other way to get Bitcoins except by buying them, I believe price will skyrocket, but it all depends on the demand though, and how good the network is by the time, if after mining ends, and transaction fees skyrocket, then I believe this will be a major issue for many most especially the small investors, but i still believe this is unlikely to happen, but let's see what happens then.

The scarcity would not be a contributing factor in bringing the price up but rather it would make the investors search for new cryptocurrencies which have unlimited potential the reason I think it might not happen is because at the end of the day the developers can decide otherwise and decide to have unlimited supply to curb the inflation. I do think that having a limit on the supply does help big time since :
1. Less environmental concerns
2. Old investors do get profits while we all can still trade in satoshi
3. Unlimited potential
Demand and supply Rule would ofcourse work on full speed but how the market reacts and how the whales takes their money out and make the whole market crash at a might higher rate is something else.

No one can predict what will happen when the last Bitcoin will be mined. We can take lessons only from past history. A lot of threads have been created with the same subject, just use the search button. Look at the past where was Bitcoin and where is now. So you can assume something when it will be mined last Bitcoin. There is no way to stop supply before it reached 21M.

Judging from your replies, reaching BTC supply will really tend to take for a century or maybe not will likely reach its upper limit. But, since we can not guarantee if Bitcoin will still be the top crypto in that given year, maybe there will be another superior coin that will emerge in replace for BTC.

Moreover, in 19million BTC existing right now, is there some portion of it that is burned? it was reported then this so called "lost coins" when owners that holds BTC in there wallet forget its private key, can we assume that the BTC is burned and will likely lessen BTC circulating supply?

It will ofcourse go up as it becomes scarce due to high demand which is expected to be based on its usefulness. And it will only become more divisible if it becomes too scarce to reach more people... which will probably mean having more units that are lesser than sat like you possibly have units that are lesser than cent or penny. Bitcoin really may not reach the supply limit assuming the limit remains unchanged, or Bitcoin does nolonger exists or is nolonger in use

When all the bitcoins are mined, which will happen in about 118 years, the miners' income will come solely from transaction fees.

It can't go up instantly, because:

• Coins are brought into circulation gradually.
• Demand is another factor, irrelevant of supply, which affects the price.

As said, the main income will sooner or later come from transaction fees. This will happen much sooner than 2140.

Who knows what can happen within the next 118 years.

It will never reach 21 million as we will not be surviving until 2140, which is the expected time period for the total supply to be mined.
And thus, the price will continue to rise up every 4 years due to a phenomenon called Bitcoin Halving.

So, you personally don't need to worry about the bitcoin supply limit. It's far much better and more sophisticated than other coins in the market as of now.

NOPE
it doesnt work like that in crypto..

firstly
there are 19m btc right now.. but exchanges only have deposits of ~1m btc
and the active order books have less then that..
there is no connection to 'coins in circulation(network) vs market price
those that hoard away from exchanges dont ever trade so they dont touch the price thus dont affect the price.
markets only move via the coins deposited in exchanges and currently on ACTIVE order lines


..
secondly
as for the demand
if you look at the market changes over the last 10 years.. the average minnow order is about $400-$600. same then as it is now

what has changed is that the buyers get less coin for their fiat.

yep. even if there was less coin. or more coin deposited in an exchange. . deflation still wins out

yep in 2012 there were only 10.5m coins in circulation(network)
in 2022 there are 19m coins in circulation(network)
so normal investopia 'supply and demand' would say there is more supply.. meaning 2022 should be lower then 2012

but thats where crypto trading differs..

sellers seeing buyer only wanting to spend $400 dont then throw whole bitcoin at them as thats all a buyer is offering. instead a seller gives them a smaller portion(decimal) of crypto for their small fiat offer

its why in 2012 MTGox had orderlines of 1btc-1000btc
and why now its more like 0.0002btc-2btc

It'd eventually happen, regardless of the difficulty, as if the difficulty is too high then the hash rate will decline and therefore reduce the difficulty as a consequence. What you're suggesting, the idea that the last satoshi might not be mined, is suggesting that the blockchain will be halted, as there is no way it can continue without miners being rewarded the final rewards.


I don't see a case where miners are mining for only a few satoshis, as there will still be the transaction fees which will be higher than the last remaining satoshis.

The price of bitcoins is not determined by the supply of bitcoins, supply is only part of those factors. It is determined by the technology behind bitcoin, and by the benefits it offers to us.

Currently, we have mined 19 million bitcoins and only 2 million bitcoins left unmined, but to mine all 21 million bitcoins we will have to 2140. That means we have 120 years left before we can mine all the bitcoin, I think that's pretty far away.

thanks for the links i'll give time to read this.

Proof of Work so mining and reward for miners from transaction fee will be what you will see on Bitcoin network after all Bitcoin in total supply releases.

• How is the 21 Million Bitcoin Cap Defined and Enforced?
• Controlled supply
• Equivalent network time (another way to present the Controlled supply)
• It is with an assumption that Bitcoin won't die. If it won't die, its price will be much higher than now and income from transaction fee will be good enough for miners.

Mining the last satoshi might not happened because the difficulty might be set to very hard at that time while the price is still the same. It will be unprofitable for miners to mine that last satoshi if they will consume too much power just too mine a few satoshi but this will be a different story if the price of Bitcoin grow astronomically which no one can predict because there’s too many factor to be considered to come up to the estimated amount in the future.

It’s much better to hold any amount of Bitcoin in the future to make sure you will not miss out whatever gonna happened. We are just enter on the exciting part.

We're free to speculate but we'll never really know since none of us wil be alive for another century. We can't even say if there will be a superior tech that would replace blockchain or if Bitcoin will still be alive. What I'm sure of is that future trader or investors can't use the four year-halving cycle as basis for price speculation when the last bitcoin is mined hehe.