Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions. It was created in 2009 by an unknown person using the pseudonym Satoshi Nakamoto. Bitcoin operates on a blockchain platform that ensures the security of transactions and the scarcity of the currency. Bitcoin has a finite supply, and the maximum number of bitcoins that can ever exist is 21 million. The question that arises is when will the bitcoin supply run out?
The supply of bitcoin is controlled by its protocol, which mandates that the block reward for miners is halved every 210,000 blocks. Blocks are added to the blockchain every ten minutes, so the halving event occurs roughly every four years. The initial block reward was 50 bitcoins, and it was halved to 25 bitcoins in 2012. In 2016, the block reward was again halved to 12.5 bitcoins, and in 2020, it was halved to 6.25 bitcoins. The next halving event is expected to occur in 2024, and the block reward will be reduced to 3.125 bitcoins.
The halving of the block reward is a significant event in the bitcoin ecosystem because it reduces the rate of new bitcoin creation. This means that the supply of new bitcoins will continue to decrease until it eventually reaches 21 million. The current rate of bitcoin creation is approximately 900 bitcoins per day. This rate will continue until the next halving event in 2024, where it will be reduced to 450 bitcoins per day. The rate of bitcoin creation will continue to decrease until it reaches zero, at which point the supply of bitcoin will be exhausted.
It is estimated that the last bitcoin will be mined in the year 2140. This is based on the assumption that the current rate of block production remains constant, and there are no significant changes to the bitcoin protocol. However, it should be noted that the rate of block production is not constant and varies based on the difficulty of the mathematical problem that miners need to solve to add a block to the blockchain. If the difficulty of the problem increases, the rate of block production will decrease, and if the difficulty decreases, the rate of block production will increase.
It is also possible that the bitcoin protocol could be changed in the future to increase or decrease the maximum supply of bitcoin. However, any change to the protocol would require the consensus of the bitcoin community, which can be challenging to achieve given the decentralized nature of the ecosystem.
In conclusion, the bitcoin supply will run out when the maximum supply of 21 million bitcoins is reached. The current rate of bitcoin creation is decreasing due to the halving of the block reward every four years. The last bitcoin is expected to be mined in the year 2140 based on the current rate of block production. However, changes to the bitcoin protocol or the difficulty of the mathematical problem that miners need to solve could affect the rate of block production and the timeline for when the bitcoin supply will run out.