Bitcoin, the world’s first and most well-known cryptocurrency, was launched in January 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. The currency’s primary feature is that it is decentralized, meaning that it is not controlled by any central authority. Instead, transactions are verified by a network of nodes using cryptography, and the entire system is maintained by a distributed network of users.
One of the key aspects of the bitcoin network is its mining process. In order to add new transactions to the blockchain, bitcoin miners must solve complex mathematical problems. These miners are rewarded with new bitcoins for their efforts, and this is how new bitcoins are introduced into circulation.
So, how many bitcoins have been mined so far? As of August 2021, the total number of bitcoins in circulation is just over 18.7 million. This represents approximately 89% of the total number of bitcoins that will ever be created, which is capped at 21 million.
The rate at which new bitcoins are introduced into circulation is gradually slowing down. In the early days of the network, the mining reward was 50 bitcoins per block. However, this reward is halved approximately every four years, as part of the bitcoin protocol’s built-in inflation control. The current block reward is 6.25 bitcoins, and it is expected to be halved again in 2024.
The process of mining new bitcoins is becoming increasingly difficult and expensive, due to the increasing computational power required to solve the mathematical problems. As a result, many miners are pooling their resources and using specialized hardware to increase their chances of earning rewards.
Despite the challenges involved in mining bitcoin, it remains a popular and lucrative activity for many individuals and companies. A number of large-scale mining operations have emerged in recent years, particularly in countries with cheap electricity and favorable regulatory environments.
The mining process has also come under scrutiny for its environmental impact. The energy-intensive nature of mining has led to concerns about its carbon footprint, particularly given the growing demand for renewable energy sources.
In addition to mining, bitcoins can also be obtained through other means, such as purchasing them on a cryptocurrency exchange or receiving them as payment for goods or services. The value of bitcoin has fluctuated wildly over the years, reaching an all-time high of nearly $65,000 in April 2021 before falling back to around $30,000 in July.
Despite the volatility of its value, bitcoin has proven to be a resilient and enduring currency, with a growing number of individuals and institutions adopting it for various purposes. As the number of bitcoins in circulation approaches its maximum limit, it is likely that the currency will continue to play a significant role in the global financial landscape for years to come.