When Satoshi Nakamoto created the first bitcoin in January 2009, there were nearly 21 million coins left to be mined. The scope to create these many coins played a pivotal role in sending the bitcoin prices soaring lately. As more coins were mined, the higher rose the bitcoin's price. Conversely, as fewer coins were left to be mined, the higher was the bitcoin price. As 80% of the total number of bitcoins have already been mined by January 13, there are only one-fifth of the capped supply that will be mined in the coming years. The conventional economics states that the price of a commodity rises on account of higher demand and the limited availability of the product. Over 16.8 million bitcoins have now been mined by the miners worldwide and there will be another 4.2 million digital coins that will see the light of the day. This happens while the demand for the cryptocurrency is continuously soaring, leading to a speculation that the bitcoin prices will take a flight in the time to come.
What Is Bitcoin Mining?
Bitcoins are created as a reward for a process known as 'mining'. Bitcoins follow a technology called blockchain, which is the collection of several blocks. For adding one block to the chain, miners are awarded 12.5 bitcoins. The reward will decrease by half every four years, as per the bitcoin protocol. This means in another two years, the miners will get 6.25 bitcoins for every block they mine. As the reward continues to decrease every four years, it will plunge to zero in the year 2140 by when all 21 million coins would have been mined.
Number Of Bitcoins Already Mined
Exactly one year ago on January 15, the total number of bitcoins that were mined was 16,104,750, which means a little less than 77% of the coins were mined. In one year, 3% of the new bitcoins were mined. Two years ago, the corresponding figure was 15,089,500, which means 71.8% of the coins were mined by 15 January 2016. In the past two years, nearly 8.2% of the new bitcoins were mined. Bitcoins are traded at $13,804 on Monday on BitStamp, a bitcoin exchange and at Rs 10.23 lakh at India's Unocoin.
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