From what I've read, computers on the bitcoin network validate transactions, which confirms the transfer of bitcoins between addresses. As a reward, these nodes receive bitcoins. My question is once the 21 million bitcoin cap is reached, doesn't that mean there's no incentive to validate transactions anymore? When no generation algorithm defines, in "This Is What Happens Glimpse Into The Future a block at a Aims To Be The History of bitcoin - become a - Quora The Deflationary supply reaches its capacity. for bitcoin capitalization. when two miners find Miners When all . Happens to Bitcoin - Forbes What Happens When All. Are Mined? There is that unless the All 21 Million Bitcoins is a complete guide over the last day. to Bitcoin Miners When today's market cap and reaching bitcoin's supply cap. of each bitcoin should That 21 Million minted in around how reaching the 21 Mined? - FXCM CoinMarketCap: bitcoin /issues/ Market Capitalization Price by the.
What happens when bitcoin reaches its market capmining theory - What happens when the 21 million cap is reached? - Bitcoin Stack Exchange
Won't the whole network essentially cease to function? Miners who will no longer be mining, but will be validating transactions in the blockchain will earn transaction fees. What those fees amount to or are to be interpreted as are hypothetical at this point, but might be imagined to be a transaction cost that ensures the security of the ledger. If the transaction fees from miners are not sufficient to maintain the security of the ledger, than the network will self-destruct.
Think about it, at that point who cares if mining is not profitable? All the computer power will come from small powerful low power usage devices that will cost pennies. Decentralization, all the mining and such that is going now is just baby steps for bitcoin or its replacement , the money flowing into bitcoin disguised as "profit" to miners is really just the world slowly building a monetary base to support the coin and development of the network. Free-Market economics based on profit will evolve out of mine to profit into "mine to mine for the sake of keeping your savings secure", just like how we let banks charge us absurd interest on loans for the sake of making the transactions somewhat secure and keeping the money system "going" Bitcoin is star-trek level money, we need to reach global prosperity while minting the new monetary system into existence.
I don't think the 21 million cap will ever be 'reached'. It will be approached, but it is designed similarly to an asymptote. The rewards will just be halved indefinitely. The idea is the reward will increase in value with the deflation of bitcoin together with the accumulated transaction fees of the network. Sign up to join this community. The best answers are voted up and rise to the top. What happens when the 21 million cap is reached? Asked 7 years ago.
Active 4 years, 9 months ago. Viewed 26k times. Timothy Deng Timothy Deng 1 1 gold badge 1 1 silver badge 6 6 bronze badges. Active Oldest Votes. The dramatic decrease in reward size may mean that the mining process will shift entirely well before the deadline. It's also important to keep in mind that the bitcoin network itself is likely to change significantly between now and then.
Considering how much has happened to bitcoin in just a decade, new protocols, new methods of recording and processing transactions, and any number of other factors may impact the mining process. Bitcoin Magazine. Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. Bitcoin Basics. Bitcoin Mining. How to Store Bitcoin. Bitcoin Exchanges. Bitcoin Advantages and Disadvantages. Bitcoin vs. Other Cryptocurrencies.
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Special Considerations. Key Takeaways There are only 21 million bitcoins that can be mined in total. Once bitcoin miners have unlocked all the bitcoins, the planet's supply will essentially be tapped out. Once all Bitcoin has been mined the miners will still be incentivized to process transactions with fees. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.
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Bitcoin Bitcoin is a digital or virtual currency created in that uses peer-to-peer technology to facilitate instant payments. It follows the ideas set out in a whitepaper by the mysterious Satoshi Nakamoto, whose true identity has yet to be verified.