How many bitcoin have already been mined?

As of 2023 it is estimated that around 90% of all Bitcoins had already been mined. Bitcoin's supply is designed to be limited to 21 million coins, and the process of mining, in which new Bitcoins are created and added to the circulating supply, has a predetermined schedule. Here's an explanation of this phenomenon:
 

1. Limited Supply:

Bitcoin's protocol specifies a maximum supply of 21 million coins. This cap on the total number of Bitcoins differentiates it from traditional fiat currencies, which can be printed without limit.

 

2. Mining Process:

New Bitcoins are created through a process known as mining. Miners use computational power to validate transactions, secure the network, and solve complex mathematical puzzles. As a reward for their efforts, they receive newly created Bitcoins, known as the "block reward."

 

3. Halving Events:

Approximately every four years, the block reward is reduced by half in an event called "halving." This event is hard-coded into the Bitcoin protocol. The purpose of halving is to gradually reduce the rate at which new Bitcoins are introduced into the system.

 

4. Scarcity and Incentives:

The decreasing block reward creates scarcity and economic incentives for miners. As the reward diminishes over time, miners must increasingly rely on transaction fees to sustain their operations.

 

5. Historical Halvings:

Bitcoin has experienced several halving events since its creation in 2009. The first halving occurred in 2012, reducing the block reward from 50 to 25 Bitcoins per block. The second halving occurred in 2016, reducing the reward to 12.5 Bitcoins. The most recent halving took place in May 2020, reducing the reward to 6.25 Bitcoins.

 

6. The 90% Milestone:

The estimate that around 90% of all Bitcoins have been mined is based on the assumption that, as of the most recent halving event in May 2020, approximately 18.75 million Bitcoins had been mined.

 

7. Implications:

As Bitcoin's supply approaches its 21 million limit, its scarcity becomes more pronounced. Scarcity, combined with growing demand, can have implications for its value as a store of value and digital asset.

 

8. Ongoing Mining and Future Halvings:

The remaining Bitcoins will continue to be mined over the next several decades, with the final Bitcoins projected to be mined around 2140. Future halving events will further reduce the rate of new Bitcoin issuance.