Bitcoin, created in 2009 by Satoshi Nakamoto, is a decentralized digital currency. It operates without intermediaries on a peer-to-peer network, recorded on the blockchain ledger.

Mined through solving mathematical problems, its supply is capped at 21 million, making it deflationary. This limitation is a deliberate measure to ensure its value over time by preventing inflation,

Why specifically 21 million? 

It's believed that Bitcoin's creator, Satoshi Nakamoto, chose this number with the vision that 0.0001 BTC would approximate the value of 1 Euro, and in a scenario where Bitcoin replaces fiat currency, each Bitcoin would be valued at around one million USD.

Will all 21 million Bitcoins be circulated in one day?

However, it's unlikely that all 21 million Bitcoins will ever be in circulation. There are two reasons for this. Firstly, a portion of Bitcoins is inaccessible due to lost private keys or seed phrases, with estimates suggesting that around a fifth of all Bitcoins may be lost forever. 

Additionally, the fractional units of Bitcoin smaller than 1 Satoshi (0.00000001 BTC) are rounded down, making the 21 million mark practically unattainable.

As a result, even though over 19 million Bitcoins have been mined as of now, it's unlikely that the total in circulation will ever reach 21 million. When will this cap be reached? Experts project that the final fraction of the last Bitcoin will be mined around the year 2140.

What happens once all 21 million Bitcoins are mined?

Once all 21 million Bitcoins are mined, the Bitcoin network will continue to function without interruption. However, miners will no longer receive new Bitcoins as block rewards. Instead, they will rely solely on transaction fees as their reward for validating transactions. 

This shift in the incentive mechanism won't fundamentally alter how Bitcoin operates; it will still use the Proof of Work (PoW) protocol, with miners validating transactions and the network remaining decentralized and autonomous. While the exact impact on miners is uncertain, the transition is expected to occur gradually over time. 

Despite this change, Bitcoin's fundamentals and operations will remain intact, ensuring its longevity as a decentralized digital currency. Therefore, even after the last Bitcoin is mined, the network will continue to facilitate transactions and maintain its status as a pioneering cryptocurrency.

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