Last 5% of Bitcoin's Supply Projected to Take Over a Century to Mine

The inherent scarcity of Bitcoin is underscored by its programmed halving schedule, which dictates that the final 5% of its total supply will take more than 100 years to be mined. This long-term emission plan is a fundamental aspect of the cryptocurrency's design, as highlighted by Cointelegraph. The digital asset's protocol ensures a predictable, diminishing rate of new coin creation.

Bitcoin's halving events occur approximately every four years, or after every 210,000 blocks are mined, reducing the reward miners receive for validating transactions by 50%. This mechanism is crucial for maintaining scarcity and providing a defense against inflation, contrasting with traditional fiat currencies that can be printed at will. The most recent halving, in April 2024, saw the block reward decrease to 3.125 BTC.

With a fixed maximum supply capped at 21 million coins, approximately 19.7 million Bitcoins have already been mined. The remaining 1.3 million Bitcoins are subject to increasingly smaller block rewards. As stated by Cointelegraph, "> The last 5% of Bitcoin’s supply will take over 100 years to be mined due to its halving schedule. Scarcity is already programmed in."

Experts estimate that the last Bitcoin will be mined around the year 2140. This extended timeline for the final portion of the supply means that the inflation of new Bitcoin entering circulation becomes increasingly marginal. While halvings historically lead to speculative interest and potential price appreciation due to reduced supply, they also present challenges for miners, who must contend with halved rewards and rising operational costs. The long-term scarcity model remains a core tenet of Bitcoin's value proposition.