About Bitcoin Scarcity
The most important advantage of Bitcoin is its unique disinflationary economic model that makes it an excellent investment alternative to gold and traditional fiat currency. Total Bitcoin supply is fixed at 21 million. As of August 2020, around 18.45 million bitcoin have already been mined, which is roughly 88% of the total supply.
The current disinflationary Bitcoin economic model will transform into a deflationary model once the last Bitcoin is mined. This is how Bitcoin economic model works in contrast with the traditional fiat system. No more Bitcoin will be mined beyond 2140 and the total Bitcoin supply will be only decreasing for such reasons as lost Bitcoin and mistaken Bitcoin transaction.
Bitcoin Inflation Rate
The current block reward amount is equal to 6.25 BTC per Bitcoin block and decreases by half every 210,000 blocks, or approximately every four years. We estimate that around 900 bitcoins will be mined on daily basis until the next Bitcoin halving event in 2024.
Bitcoin block reward will be reduced to 3.125 BTC per block at this time and Bitcoin inflation rate will drop below 1% first time ever. Notably, Bitcoin inflation rate will become equal to 0% when the last bitcoin is mined, presumably in 2140. Once the last bitcoin is mined, the Bitcoin economic model will become purely deflationary.
You can learn more about Bitcoin and its unique economic model here.
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Digital Finance is a Washington, DC, financial company that specializes exclusively in the Bitcoin market. We provide easy and compliant exposure to digital assets and help our customers from all over the world toinstantly buy Bitcoin and earn up to 6% annually on their Bitcoin holdings.
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