How Many Bitcoins have been Mined so Far and How it Affects its Price Forecast
Regardless, mining Bitcoin might be a challenging task since the last coin is predicted to be mined in 2140! Even with 19 million coins mined, the majority of the global population cannot afford even a single Bitcoin, and it seems it's going to get tougher. Recent research from 2021 concludes that about 106 million people use cryptocurrencies and predict an expansion in the blockchain market by over $35 billion.
What it Means for Bitcoin's Price Forecast
Considering the fact that about 90.5% of bitcoins have been mined, its price forecast is also set to change. When the supply reaches its maximum, block miners will no longer receive any rewards, thus affecting its market price. The initial reward price had been reduced following the three halving events from 25 BTC to 6.25 BTC.
The next halving is set to occur in 2024, and the reward price will reduce even lower. The halving event happens every four years. Moreover, when Bitcoin’s supply declines, its price remains the same, and in the long run, its price increases. Evidence from the second halving proves this when its price rose by 284% after one year. The recent halving increased its price by 559%.
Bitcoin’s Recent Prices
In the past two months, Bitcoin’s price has increased from $40,000 in February to $47,000 at the beginning of March. In the last quarter of 2021, BTC's price hit its all-time high of $68,000 in November. In the past few months, its price hasn't passed $50,000, but it's still worth a lot more than it was years ago. Experts predict its price will increase to $100,000 by 2025.
Even with its current increase in supply, most companies around the globe are updating their systems to fit digital payment methods. Popular labels like Nike seek to employ monetization strategies using the digital multiverse. Also, the number of coins held by long-term investors has increased from the beginning of April. These long-term investors hold over 12 million BTC.
However, Bitcoin’s price predictions are set to rise over the coming years. Its current price is $46,782, and experts predict its rise to $50,000 by the end of 2022. Lightning networks from Kraken, smart contracts, privacy, and fee reduction of the Taproot update will foster these massive improvements. It all implies that the price is set to increase considering these events.
BTC Supply
According to research, the limited supply of BTC affects its price by increasing in value. It implies that there will be an increase in demand for a single coin, thus increasing its price. Having only 1.9 million Bitcoin left to mine shows how limited the supply will be. Simply, an increase in the coins mined means that there will be a decrease in the new BTC mined. As such, this will affect its supply, cost of production, and the rewards awarded to the miners.
All these effects have a role to play in the BTC price forecast. The supply will reduce since new coins are created slowly, which is also set to reduce overtime following the halving events. It affects the cost of production since more power will be used to mine less Bitcoin. Also, Bitcoin miners will face negative impacts from the decrease in its supply. The rewards will be reduced by half in the next halving event, and no rewards will be awarded after the 21 millionths Bitcoin is mined.
BTC Demand
Following the reducing supply of Bitcoin, the demand is set to increase over the coming years since 19 million coins have already been created. Geographical and economic considerations foster Bitcoin demand. Most countries around the globe have adopted the use of digital currency, and as such, bitcoin's demand increased.
Moreover, an increase in demand leads to an increase in its price since its adoption has grown in countries like China and Venezuela. Demand for bitcoin is also seen in its use to fund criminal activities. Investors in the digital currency are ever-rising, and it’s a fact that the price forecast is affected. A decrease in supply leads to an increase in demand, resulting in a bullish trend.
It also affects regulatory developments. Considering the regularly-free ecosystem, Bitcoin's reputation had grown and thus increasing its use, mostly for criminal activities. It also has its benefits since the currency can be used across different countries without government control. Regardless, the cons of this advantage are that criminals use digital currency as a base for funding illegal activities, even in financial jurisdictions. However, bitcoin's use is not limited by geographical boundaries.
Conclusion
Recent studies of the Bitcoin price surges conclude that the digital currency is set to evolve over the years to come. Following the recent number of bitcoin mined, leaving less than 2 million new coins to create, the price forecast will be limited to its demand and supply, thus increasing its price.
The demand will increase due to limited supply, resulting in an increase in BTC price. Also, production costs and rewards to miners will have a part to play in the price forecast. However, these impacts caused by the increase in coins mined might affect both BTC investors and miners.