Bitcoin Passes 20 Million Coin Milestone: Rarity Enters New Era

The Bitcoin network has just reached a historic milestone: 20 million coins mined out of a total of 21 million. So there is only one million BTC left to create and this last million will take more than a century to come to light.

One million bitcoins left to mine, largest shortage underway

Since its inception in 2009, Bitcoin has evolved according to an unyielding logic: a limited supply, a plan etched in code, and a community that monitors every block produced. On March 9, at block 940,000, the network passed a milestone that many now consider the most symbolic since the first block mined by Satoshi Nakamoto.

Today, the 20 millionth Bitcoin was mined on the network, an event celebrated by the entire global community of BTC enthusiasts. Now about 450 new coins are created every day.

This rate is halved every four years during the halving, a mechanism unique to Bitcoin that gradually compresses the creation of new coins. At this rate, the last bitcoin won’t be created until around 2140.

David Eng, managing partner of Energy Co, sums up the challenge well:

The market is about to experience an unprecedented phenomenon: a global asset whose supply is nearly exhausted.

What fascinates here is the absolute predictability of the system. Raphael Zagury, CEO of mining company Elektron Energy, puts it plainly: “The release schedule is transparent for decades ahead. People appreciate predictable rules, especially when it comes to money. “

Tommy Rogulj, portfolio manager at Swyftx, goes even further. For him, Bitcoin is “a hard cap, permissionless, neutral asset, operating on a transparent supply curve, unlike fiat currencies, infinitely expandable.”

A feature that makes perfect sense in a global context marked by inflation, geopolitical tensions and growing mistrust of central banks.

Although this milestone is historic, its impact on the markets remains null for now. Charles Edwards, founder of Capriole Investments, bluntly says: “Markets already know the growth rate of Bitcoin supply. It is not an event without impact. ”

Zagury agrees: Liquidity and macroeconomic conditions remain the prevailing factors. “

However, in the long run, the scenario could change. “ Rarity combined with predictable politics is a powerful combination. Over time, markets tend to reward systems they trust ” Zagury shades.

An outlook shared by analyst PlanB, who projects an average Bitcoin price of $500,000 in the 2024-2028 cycle through his Stock-to-Flow model, based precisely on this relationship between scarcity and value.

However, one question remains unanswered: what will happen after the last bitcoin is mined in 2140? Without a new issue, miners will have to survive only on transaction fees. Some see this as a risk to network security; others, the further natural evolution of a system designed to last.

In short, twenty million bitcoins mined, one million more to come: Bitcoin is inexorably moving towards its absolute limit. Regardless of whether the markets react today or not, the logic of programmed scarcity is being written block by block over the long term. And that is perhaps his greatest strength.

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The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Before making any investment decision, do your own research.