Written by Dean Lee, SEO team writer at CCP Marketing for Bitcoin Prime.
The original Bitcoin whitepaper was written by someone with the pseudonym of Satoshi Nakamoto. His true identity, however, has never been proven and there are no clear facts regarding the actual details of who Satoshi Nakamoto was.
A few rumours circulated about the actual inventor of bitcoin having been one of three people, namely A Nakamoto, Craig Wright and Nick Szabo. Out of these individuals, two denied that they were the inventors, and Craig is said to have falsely claimed that he was the inventor of bitcoin. It might amaze you that even the inventor of Ethereum referred to Craig as a fraud. But who really knows.
The private identity of Satoshi Nakamoto created many questions in the minds of bitcoin investors, traders and miners but one of the big debates revolves around the future of bitcoin and bitcoin mining. This is because there is a limited supply of bitcoin 21 million Bitcoin. As of February 24th 2021 there was 18 638 million bitcoin that had been mined leaving only 2 362 million yet to be put into circulation. So, if you interested and want to invest in Bitcoin visit Bitcoin Prime and stake your claim today as you might be running out of time.
To provide you with a bit of background and a look into the future of bitcoin mining we have put together a few key bits of information we are sure you will find interesting.
Bitcoin Limited Supply
Bitcoin was invented in 2008, and the supply of bitcoin was locked at the instance stating that only 21 million bitcoin units could ever be mined and not more.
Bitcoin Mining and Reward
Bitcoin mining is the process that results in generating bitcoin units. The core notion of bitcoin mining aims to validate bitcoin transactions. Bitcoin miners validate these transactions by solving very complex math puzzles within a timeframe rendered by the bitcoin algorithm on the bitcoin network. After verifying bitcoin transactions, bitcoin miners get bitcoin units as the reward.
Bear in mind that to get bitcoin units as the reward for successful bitcoin mining, the miners are required to solve complicated math puzzles against their fellow miners. The period given by the bitcoin algorithm or proof of work to miners to verify the bitcoin transactions is 10 minutes.
Future of Bitcoin Mining
Every four years, or when 210 000 blocks of bitcoin have been mined, an event called bitcoin halving takes place. The first event took place in 2012 and the second event was 2016. This means that the reward for mining a block falls by half every four years until the maximum of 21 million bitcoin have been released by the bitcoin networks. And that date is expected to be in 2140.
Bitcoin halving is the process of halving the mining rewards received every 4 years, or after every 210 000 blocks are mined. By halving the rewards achieved through bitcoin mining, it ensures that the amount of bitcoin in the market does not increase exponentially, and this in turn tends to make the price of bitcoin in circulation more expensive as is clearly shown in the following pricing below:
- At the first halving of the bitcoin mining reward, the price of bitcoin was around $11. Within a year it was $1 100.
- With the second halving in 2016, Bitcoin fluctuated between $500 – $1 000 and then shot up to $20 000 by December 2017.
- The third halving in 2020 marked another surge. Bitcoin was trading around $9 000 and in December 2020 Bitcoin traded at $20 000.
You might wonder why miners will continue to mine bitcoin with the dwindling rewards every four years, and why they would continue to verify bitcoin transactions. As mentioned above, the bitcoin mining block reward also constitutes a transaction cost levied by a trustable exchange. That explicit transaction cost is the reason miners verify bitcoin transactions, as the transaction cost is guaranteed.
The transaction cost availed by a reputable bitcoin mining pool is worth hundreds of dollars, but after the overall limit of 21 million bitcoin is reached through bitcoin mining, the transaction fees will correspondingly grow as miners verify bitcoin transactions by contributing computing capital into the future.
Several bitcoin mining pools and mining plants have blazed a future trail of shifting their demands for energy to a much greener source, which also means that bitcoin mining will not have a negative effect on the green economy into the future and it will continue to thrive as miners make money in perpetuity.
This is the entire future of bitcoin mining.
