The oldest and most powerful of cryptocurrencies, the supply of Bitcoin has been limited since the Bitcoin Startup blog by Satoshi Nakamoto. All systems and rules were determined never to be changed again.
With a total supply of 21 million units, the last one is expected to be mined in 2140. However, while this is the case, the revenues of Bitcoin miners are decreasing day by day. After the last Bitcoin was mined in 2140, Bitcoin miners will only be able to earn income from transactions they approve.
Although this situation is bad for miners, it is welcomed by Bitcoin investors. Because its supply is limited and it is not affected by inflation, it promises high values to its investors in the future.
It is not yet clear why the Bitcoin supply has been determined as 21 million instead of 30 million. However, mathematical operations made on blockchain technology bring more than 99 percent certainty.
How Does? When Bitcoin was first mined, the value of the first block miners found was 50 BTC. That’s why the first transaction seen in the GENESIS block (the first block) was given 50 BTC to the creator of the block, namely SATOSHI NAKATOMO.
This is an algorithmically calculated value programmed to decrease over time divided by two. The reward is halved every 210,000 blocks and so on. The current block reward is currently 6.25 BTC.
If we come to the mathematical dimension of the work, we can express the division into two as follows;
For every 210,000 blocks mined by miners, the reward will be generated and the reward will be halved for the next block.
24*365 = 8760 hours, so there are 35040 hours in every four years, which is the half-period. 6 blocks are created per hour. Buddha makes 210 thousand 240 blocks in four years.
When we calculate all the block rewards;
50 + 25 + 12.5 + 6.25 + … = 99.99847…
we get the result. And when we multiply the block rewards with the block halving amount of 210 thousand, we can get the result of 21 million.
This is the reason why 21 million Bitcoins will be produced, but if Satoshi Nakamoto had made the first btc block reward of 100 instead of 50, we would try to express why the supply of Bitcoin is limited to 42 million today.
We gave you the answer why the supply of Bitcoin is 21 million units, but why not 42, why not 100? There is only one person who can answer that. And he is none other than the mysterious Satoshi Nakamoto…
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