Crypto Mining: What Happens After Last Bitcoin is Mined?
• Bitcoin mining is the process of verifying and recording transactions on the blockchain network.
• Miners are rewarded with a predetermined amount of BTC for each block of transactions, but will no longer receive rewards once the 21 million cap is reached.
• After the last coins are mined, miners will still play an essential role in the Bitcoin ecosystem, with transaction fees becoming the main incentive.
What Will Happen When All Bitcoin Are Mined?
Bitcoin is a digital currency created through a process called mining. This involves computer hardware to solve complex mathematical problems and verify transactions on the blockchain network. For their efforts, miners are rewarded with a predetermined amount of BTC for each block of transactions. However, since there is a supply cap on Bitcoin at 21 million units, it begs the question of what will happen when all Bitcoin have been mined?
Since Satoshi Nakamoto mined the genesis block on Jan 3rd 2009, more than 19 million BTC has been awarded to miners in block rewards. This reward consists 6.25 BTC per successfully validated new block on the blockchain – worth around $188,381 at current market prices (CoinGecko). In addition to this reward, miners also receive transaction fees which have totalled over $50 billion since 2010 (Glassnode).
Post Cap Mining
Once all 21 million coins are issued, miners will no longer receive rewards for verifying transactions as there would be nothing left to mine – leading many to ask what’s next? According to some experts such as Nick Hansen (founder and CEO of Luxor Mining), miners will still be essential to ensuring smooth operation on the blockchain even after all Bitcoin have been minted. The primary incentive for these miners post-cap however would be transaction fees rather than block rewards as they become increasingly important part of Bitcoin mining economics.
The fate of miners after all coins have been issued remains unclear; however it’s clear that they will play an integral role in continuing operations within the blockchain network despite lack of rewards from newly minted blocks. Furthermore understanding fee dynamics and forecasting them into future becomes more critical as they become primary incentive for future mining activities post-cap.
Blockchain Council: https://www.blockchain-council.org/blockchain/what-will-be-the-fate-of-miners-after-all-bitcoinsaremined/