Bitcoin is a digital currency that was created in 2009 by an unknown person using the name Satoshi Nakamoto. Transactions are made with no middlemen – meaning, no banks or other financial institutions are involved. The bitcoin network is made up of thousands of computers that validate transactions and add them to a public ledger called the blockchain.
So, how much bitcoin is there? The total amount of bitcoin that will ever exist is 21 million. This is a hard cap that was built into the protocol of the currency. Currently, there are over 18.5 million bitcoins that have been mined and are in circulation.
Mining is the process through which new bitcoins are created and added to the network. Miners use powerful computers to solve complex math problems that validate transactions and add them to the blockchain. When a miner successfully solves a problem, they are rewarded with a certain amount of bitcoin. This is how new bitcoin enters circulation.
The amount of bitcoin rewarded for mining a block is cut in half every 210,000 blocks. This is known as the halving and is built into the protocol to ensure that the supply of bitcoin is limited. The most recent halving occurred on May 11, 2020, when the reward for mining a block was reduced from 12.5 BTC to 6.25 BTC.
As of September 2021, the current reward for mining a block is 6.25 BTC. This means that every 10 minutes, a new block is added to the blockchain and 6.25 BTC is added to circulation.
Apart from mining, bitcoin can also be purchased on cryptocurrency exchanges or through peer-to-peer transactions. The value of bitcoin is determined by market demand and supply. It is a highly volatile asset, with prices often fluctuating wildly in short periods of time.
The current market value of bitcoin is constantly changing, and as of September 2021, the price of bitcoin is around $45,000 USD. This means that the total value of all the bitcoins in circulation is around $840 billion USD.
It is important to note that while the total supply of bitcoin is limited to 21 million, not all of these bitcoins are in circulation. Many bitcoins have been lost over the years due to people losing access to their wallets or forgetting their passwords. It is estimated that around 20% of all bitcoins in existence are lost forever.
In conclusion, there are currently over 18.5 million bitcoins in circulation, with a maximum supply of 21 million. Bitcoin is created through the process of mining, and the reward for mining a block is reduced by half every 210,000 blocks. The value of bitcoin is determined by market demand and supply, and it is a highly volatile asset. While the total supply of bitcoin is limited, not all of these coins are in circulation, with an estimated 20% lost forever.