February 25, 2021

How will miners earn when all bitcoins are mined?

How will miners earn when all bitcoins are mined?

Satoshi Nakamoto stipulated that a limited amount of Bitcoin (BTC) is needed to prevent inflation.. In a traditional monetary system, there may bean unlimited amount of money is printed, which negatively affects their purchasing power for the acquisition of goods and services, as, for example, happens in Venezuela.

To be precise, the maximum number of bitcoins is 20,999,999.9769 coins, and initially assumed a reward of 50 bitcoins per block.

With a mechanism called halving,every 210,000 blocks, the reward is halved, and decimal digits after the eighth position are discarded, so after 210,000 blocks 50 * 210,000 BTC were generated, which is equal to 10,500,000 bitcoins.

After the next 210,000 blocks, 25 * 210,000 BTC was generated, which equals the 5,250,000 bitcoins that were added to the previous ones: 10,500,000 + 5,250,000 = 15,750,000 bitcoins and so on.

As a result, all 21 million BTC will be produced only by 2140 (approximately).

There are suggestions that the completion of productionBitcoins will lead to a loss of interest on the part of the miners, although we must not forget that the incentive remains the commissions paid during BTC transactions.

Payments will allow the ecosystem to survive,since after mining all the coins, bitcoins will increase in price, at least this should happen in the long run. Thus, with a price for bitcoin between $ 100,000 and $ 1 million, the commission can range from 1,000 to 100,000 satoshi.

Accordingly, even in the absence of production and rewards for it, the miners will retain serious financial reasons for maintaining the blockchain in a safe and working condition.

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