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Bitcoin

How many bitcoin do we have in the world?

Bitcoin was created in 2009 by an unknown person using the name Satoshi Nakamoto. It is a digital currency that is decentralized and operates independently of any central bank or government. It is a peer-to-peer payment system that allows for secure online transactions without the need for intermediaries, such as banks or financial institutions. One…

Bitcoin was created in 2009 by an unknown person using the name Satoshi Nakamoto. It is a digital currency that is decentralized and operates independently of any central bank or government. It is a peer-to-peer payment system that allows for secure online transactions without the need for intermediaries, such as banks or financial institutions. One of the most interesting features of bitcoin is that the total supply of bitcoins is limited to 21 million, which means that there can never be more than 21 million bitcoins in existence. But how many bitcoins do we have in the world right now?

As of June 2021, the total number of bitcoins in circulation is around 18.74 million. This means that approximately 89% of the total supply of bitcoins has already been mined. The remaining 11% of bitcoins are expected to be mined over the next 120 years, as the bitcoin protocol is designed to release new bitcoins at a diminishing rate every four years.

Mining is the process by which new bitcoins are created and transactions are verified. It involves solving complex mathematical problems using specialized computer hardware. Miners who successfully solve these problems are rewarded with new bitcoins. The reward started at 50 bitcoins per block when bitcoin was first created in 2009, but it has since been halved every 210,000 blocks, which occurs approximately every four years. Currently, the reward for mining a block is 6.25 bitcoins.

The rate at which new bitcoins are mined is limited by the difficulty of the mathematical problems that need to be solved. As more miners join the network, the difficulty increases, which means that it becomes harder to mine new bitcoins. This is designed to ensure that the rate of new bitcoin creation remains stable over time.

It is important to note that not all of the bitcoins in circulation are actively being used for transactions. Some bitcoins are held by investors as a store of value, while others may have been lost or destroyed over time. According to a study by Chainalysis, it is estimated that around 4 million bitcoins have been lost or are permanently inaccessible, which means that the actual number of bitcoins in circulation may be closer to 14.74 million.

Despite the limited supply of bitcoins, the value of bitcoin can be highly volatile. This is because the value of bitcoin is determined by supply and demand in the market, rather than any underlying asset or economic activity. As such, the price of bitcoin can fluctuate rapidly in response to market sentiment and news events.

In conclusion, the total number of bitcoins in the world is currently around 18.74 million, with the remaining 11% expected to be mined over the next 120 years. However, not all of these bitcoins are actively being used for transactions, as some are held as a store of value or may have been lost or destroyed. The limited supply of bitcoins is one of the key features that makes bitcoin unique, but it also contributes to its highly volatile price.

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