Hi i have a question, i hope someone could answer it
As of now, the circulating supply of Bitcoin is 16.6M
I was wondering what would happen if it reaches 21M?
Will bitcoin still work even without mining?
Or will bitcoin fall apart?
I think when all of Bitcoin are in curculation it is possible that transaction fees will rise because of increase in the demand for transactions.
Without mining Bitcoin transactions won't work but mining all the Bitcoin supply doesn't mean bitcoin miners will stop mining, miners still can make profit from transaction fees but the issue is, is transaction fees enough for miners to make profit from it? But It is too early to think about it, some experts said that all Bitcoins will be mined in 2140.
Let's just relate this in the law of supply and demand. When the market price rises the supply of good rises and as it fall the supply falls. However, the demand rises when the price falls and it falls when the price rises. So, when bitcoin reaches the maximum supply meaning the supply falls and the market price is low and the demand is high. In that event many will demand to buy bitcoin. I think its just the norm because if they demand more then they have nothing to do but wait for its availability. Anyway, many had already using it. They must increase the supply. There could be a maximum supply but it should always be more than the demand.
I think you already have the idea but the way you have stated it made me confuse.
It should be put this way, at least in my own understanding of the said law. Since the maximum supply is considered to have been reached, it can then be considered a constant supply.
At a constant supply, the price rises when the demand also rises and the price falls when the demand falls. In case of bitcoin, I can generally say that more and more people are getting into this idea each day thereby making a constant increase in demand. So, to sum it up, when the max supply has reached, the price will continuously increase and people should consider it by now.
