Miners of the leading cryptocurrency have crossed the 90% mark in coins mined. In other words, users already have more than 18,900,000 BTC at their disposal.
A few days ago, it was revealed that miners had mined 90% of Bitcoin’s total supply, which equals to 21 million – the value determined by Satoshi Nakamoto. Why that particular amount was chosen remains a mystery, as does the real identity of the Bitcoin inventor. In any case, the target is final and cannot be increased. It should take 119 years to mine the remaining 2,100,000 BTC. The fact is that about every four years the size of the award is reduced by 50%. Right now, it is 6.25 BTC every 10 minutes, but already in 2024, it will be only 3.125 BTC.
The remaining 10% might be mined by for 119 years. In theory, all these years the price of the digital asset should increase by at least 30 times the current cost of mining. A minimum of double profitability, as well as a hundred-year inflation rate, must be added to this figure of $240,000,” the analysts said.
A December 2020 report by analyst firm Glassnode attempted to assess the liquidity of Bitcoin supply. The company looked at “Bitcoin entities” and divided them into three categories based on their liquidity: highly liquid, liquid and illiquid.
“Our methodology suggests that currently 14.5 million BTC (78% of the circulating Bitcoin supply) is held by illiquid entities,” the report stated.
Experts believe that a reduction in the number of coins available for mining should lead to an increase in the value of the asset. Some say the value is $250,000, while others put forward a more modest forecast – Bitcoin will rise in price by no more than $20,000. Fidelity analysts suggest that by 2024 BTC could be close to the $1 million level.
As you may recall, that the founder of Ark Invest predicts Bitcoin’s price will rise to $550,000. Cathie Wood says institutional investors are looking for non-traditional asset class opportunities and are switching to cryptocurrency right now.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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