Bitcoin reaches a new milestone with 20 million coins already mined

The Bitcoin network has just reached a historic milestone: 20 million coins mined out of 21 million in total. So only one million BTC remains to be created, and this last million will take more than a century to come to light. 

One million Bitcoins still to mine, the ultimate scarcity underway

Since its inception in 2009, Bitcoin has advanced according to an unyielding logic: a limited supply, a schedule etched in the code, and a community that monitors every produced block. On March 9th, at block 940,000, the network passed a milestone many now consider the most symbolic since the first block mined by Satoshi Nakamoto.

The 20 millionth bitcoin has been mined on the network today, an event celebrated by the entire global community of BTC enthusiasts. Now, about 450 new coins are created each day. 

This rate is halved every four years during the halving, the mechanism unique to Bitcoin which gradually compresses the creation of new coins. At this pace, the last bitcoin will only be created around 2140.

David Eng, managing partner of Energy Co, summarizes the challenge well: 

The market is about to experience an unprecedented phenomenon: a global asset whose supply is nearly exhausted.

What fascinates here is the system’s absolute predictability. Raphael Zagury, CEO of the mining company Elektron Energy, states it clearly: “The issuance schedule is transparent for decades ahead. Humans appreciate predictable rules, especially regarding money. ”

Tommy Rogulj, portfolio manager at Swyftx, goes further. For him, Bitcoin is “a fixed ceiling, permissionless, neutral asset, operating on a transparent supply curve, unlike fiat currencies, endlessly expandable”. 

A feature that makes perfect sense in a global context marked by inflation, geopolitical tensions, and growing mistrust of central banks.

A symbolic event, but without immediate effect on the price

While the milestone is historic, its impact on the markets remains, for now, null. Charles Edwards, founder of Capriole Investments, states bluntly: “The markets already know Bitcoin’s supply growth rate. It’s a non-event, with no impact. ” 

Zagury agrees: “ Liquidity and macroeconomic conditions remain the predominant factors. ”

Yet, in the longer term, the scenario could change. “ Scarcity combined with predictable policy is a powerful combination. Over time, markets tend to reward systems they trust ,” Zagury nuances. 

An outlook shared by analyst PlanB, who projects an average price of $500,000 for bitcoin in the 2024-2028 cycle, via his Stock-to-Flow model, precisely based on this relationship between scarcity and value.

However, one question remains unanswered: what will happen after the last bitcoin is mined in 2140? Without new issuance, miners will have to survive solely on transaction fees. Some see this as a risk to network security; others, the next natural evolution of a system designed to last.

In summary, twenty million bitcoins mined, one million still to come: Bitcoin inexorably moves towards its absolute limit. Whether markets react today or not, the programmed scarcity logic continues to inscribe itself, block after block, over the long term. And perhaps that is its most formidable strength.