One of such digital assets is Bitcoin (BTC), which is commonly referred to as digital gold. A very distinct and significant attribute of it is that there will be a total of 21 million Bitcoins only. This is a fixed supply, unlike authorization currencies that can be printed at will by governments and central banks, and this aspect makes Bitcoin a deflationary asset. It is its rarity that makes it powerful, and why more investors view it as a buffer against inflation. By July 2025, more than 19.5 million Bitcoins will have already been mined, which means that there will be less than 1.5 million BTC left to mine. This paper discusses the implications of this supply limit, the distribution of Bitcoin, how to buy bitcoin, and the significance of scarcity in its long-term value.
Reason Behind the 21Million Coins Limit of Bitcoin
The fact that the supply of bitcoin is limited is coded into the software by Satoshi Nakamoto to resemble the scarcity of precious resources such as gold. It was intended to produce a decentralized and non-inflationary currency that can neither be manipulated nor devalued by any central authority. This absolute maximum cap of 21 million coins is not adjustable except by the consensus of all the network participants, which is very unlikely since Bitcoin has a dispersed and trustless consensus mechanism. This is what distinguishes Bitcoin from all conventional money and even from the majority of other cryptocurrencies.
Remaining Number of Bitcoins to Mine
People in the trading business must have the knowledge that by the end of December 2024, more than 19.7 million Bitcoins will be in circulation. This only means that there are fewer than 1.5 million BTC remaining to be mined until 2140, when the last Bitcoin is likely to be mined. Although that might sound like a small number, the rest of the supply will be emitted at an increasingly decreasing rate, courtesy of what is called the Bitcoin halving.
What Is a Bitcoin Halving?
Each halving cuts the block reward, or the amount of new BTC that those performing the mining get, by 50 percent. This is a brief history of previous halving events:
- 2009: The block reward began at 50 BTC
- 2012: Cut in half to 25 BTC
- 2016: Cut in half to 12.5 BTC
- 2020: Decreased by half to 6.25 BTC
- 2024: Reduced by half and once more to 3.125 BTC
Process of Bitcoin Mining
People in the business should know that bitcoin is mined through a process referred to as mining, whereby powerful computers are used to solve complex mathematical problems to validate transactions in the blockchain. The miner who solves the problem adds the next block of transactions and gets rewarded in Bitcoin. These payoffs make mining profitable, and as the block reward decreases due to the halving, miners must rely increasingly on the transaction fees to remain profitable.
How Much of the Currency is in Circulation?
The estimation of the currency in circulation, as more than 19.7 million Bitcoins have already been mined, does not mean that they are all available. It is said that 3 to 4 million bitcoins will never be seen again; they are trapped in wallets with no passwords, lost private keys, or destroyed hardware wallets. In other words, the actual amount of circulating supply is probably more in the range of 15.5 to 16 million BTC, rendering Bitcoin even rarer than its face value. This inadvertent lack contributes to the mysticism and value statement of Bitcoin.
Scarcity and Market Value of Bitcoin
Bitcoin price is significantly influenced by the small supply. Having a limited number of coins and the ever-increasing demand of institutional investors, retail traders, and even nation-states, the price is likely to grow as scarcity increases. Bitcoin has experienced an incredible rise in price in the last few decades, and there are expectations that it may be more than 110,000$ in the coming days. It has an easy-to-predict supply curve, and is thus used as an inflation hedge and a currency devaluation hedge, just like gold hence its nickname of digital gold.
Become a Bitcoin Owner at Bitget Now
Bitget is one of the most reliable and convenient platforms to purchase Bitcoin and use the limited supply. Having a rating of 4.7 coins and accepting more than 100 payment methods, Bitget is easy to start. To start:
- Sign up with Bitget at no cost
- Security authentication of your identity
- Deposit your funds in a way you like
- Search BTC/USDT and trade
Conclusion
One of the strongest financial innovations of the 21st century is the limited supply of bitcoin. Due to the fact that the total supply available is less than 6 percent, and even fewer coins are in circulation, Bitcoin is getting rarer each day. This limit to supply can clarify why Bitcoin is gaining value and why more investors are joining such platforms as Bitget to enter the crypto world.
