Bitcoin has a finite total supply! (Part 6)

Serialized Column：From Zero: Learn Cryptocurrency Trading：Episode 6

Bitcoin differs from fiat currencies like the dollar or yen in that its total issued supply is capped in advance, and that cap is one of its key characteristics.

Total issuance cap: 21,000,000 BTC

Last time, we explained that Bitcoin is issued through mining, but the amount issued at one time is regulated, and every four years that issuance amount is halved.

If the issuance were to increase dramatically in a very short period, it would cause inflation and Bitcoin’s value would drop rapidly.

Therefore, it is designed to avoid such confusion.

Bitcoin’sTotal issuance cap: 21,000,000 BTC—no more, no less.

If all 21,000,000 BTC were issued through mining, no new Bitcoins would ever be created.

When will the cap be reached?

As of April 21, 2016, roughly 15,450,000 BTC have already been issued.

This status can also be checked on the site “Total Bitcoins in Circulation (BLOCKCHAIN.info).”

The Bitcoins earned per mining round start at 50 BTC, then after four years drop to 25 BTC, and after another four years to 12.5 BTC, continuing halving.

Based on that,Bitcoin will reach 21,000,000 BTC around the year 2140.If mining were exhausted and the supply cap was reached in 2016, it would imply the first Bitcoin was mined in the Meiji era.

Summary

Bitcoin’s total issuance cap is 21,000,000 BTC—no more, no less!