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Bitcoin price is always a hot topic, especially since it has reached record value in anticipation of the 2024 halving event, but today, we are looking at different kind of numbers. To be more specific, we answer how many Bitcoins are there in circulation, how many Bitcoins are left, as well as how many have been lost.
Let’s do the math, shall we?
The total supply of Bitcoin is capped at 21 million coins. This fundamental aspect of Bitcoin’s design was set by Satoshi Nakamoto, Bitcoin’s infamous anonymous creator. The artificial limit was imposed in order to introduce the idea of Bitcoin scarcity, which is supposed to mimic the finite amount of precious metals, such as gold, in real life.
The goal was to help maintain or increase Bitcoin’s value over time and prevent inflation, which is a common issue with fiat currencies where central banks can print more money. By having a capped supply, Bitcoin aims to preserve its purchasing power over the long term.
Here’s a deeper look at how this works:
New bitcoins are minted through a process called mining, which involves solving complex mathematical problems to validate transactions and secure Bitcoin’s blockchain network. For this effort, miners are rewarded with Bitcoin.
This process introduces new Bitcoin into circulation. Now, when Bitcoin was introduced, the reward for mining a block started at 50 Bitcoins, but it has been halved approximately every four years thanks to the built-in mechanism known as Bitcoin halving.
Take a look at the connection between Bitcoin mining and halving in this video:
Halvings reduce the rate at which new Bitcoins are created and, as a result, the amount new coins entering circulation. The halving will happen every four yers until the block reward becomes so small that it rounds down to zero. The most recent halving occurred on April 19, 2024, after which the reward dropped to 3.125 Bitcoins per block.
| Five largest Bitcoin wallets hold more than 575,000 Bitcoins, which makes for 2.7% of all mined Bitcoins. Most of these are owned by exchanges. |
Based on the latest data available, over 19 million Bitcoins have been mined so far. This represents more than 90% of the total supply of 21 million Bitcoins. Providing an exact number is somewhat tricky, since it can fluctuate slightly due to the nature of new blocks being mined, but the milestone of 19 million coins has already been reached.
As to how much Bitcoin is left to mine, the number is just a bit fewer than 2 million bitcoins. It will take almost 120 years to mine those remaining coins. Now that we have answered how many Bitcoins are left to mine, let’s see how many are mined daily.
The number of Bitcoins mined per day can be depends on the current block reward and the average time it takes to mine a block. Current block reward, as we have already mentioned, is 3.125 Bitcoins per block as a result of the 2024 Bitcoin halving.
On average, a new block is mined approximately every 10 minutes. To calculate the daily mining rate:
This gives us:
144 x 3.125 = 450 Bitcoins per day.
So, approximately 450 Bitcoins are mined each day given the current block reward. This rate will remain until the next halving event, which is expected around 2028, when the block reward will reduce to 1.5625 Bitcoins. So far, we have covered how many Bitcoins are there and how many are left, so let’s take a closer look into how many are lost.
Although the Bitcoin blockchain is extremely secure, a certain number of coins have gone missing since Bitcoin’s inception in 2009. Estimating the exact number of lost Bitcoins is challenging because it depends on various factors.
Several analyses show that a significant chunk of the Bitcoins mined in the early years, when the cryptocurrency was less valuable and less well-known, might be lost forever. Some estimates even suggest that somewhere between 3 and 4 million Bitcoins are lost for good.
This most common reason behind lost or missing Bitcoins include:
If we take into account how many Bitcoins are there, which is 19 million, 3 to 4 million lost coins represent about 15-20% of all Bitcoins ever mined. This loss impacts the effective circulation and can contribute to the scarcity of Bitcoin, which can potentially increase its market value.
Next up, let’s take a look at when will all Bitcoin be mined and how it might affect blockchain security in the long run.
The last Bitcoin is expected to be mined around the year 2140. This estimate is based on the Bitcoin mining process and the future Bitcoin halving events. As previously explained, the mining reward will continue to halve every four years until it rounds down to zero.
Each Bitcoin slows down the rate at which new Bitcoins are issued, prolonging the time until the final Bitcoin will be mined. The final Bitcoin will be part of a block where the reward is just a fraction of a Bitcoin, stretching out over many years until virtually no new Bitcoins are left to mine.
| The Bitcoin network consumes an estimated 91 terawatt-hours of electricity per year, which is comparable to the energy usage of a small country. |
When all 21 million Bitcoins are mined, nothing dramatic will happen, but there will be some changes that will occur in the Bitcoin ecosystem and which will impact miners and the economic model of the blockchain for the most part.
These changes include:
Overall, the end of Bitcoin mining rewards will mark a shift toward Bitcoin transaction fees for network security and potentially lead to higher interest in Bitcoin as a finite resource.
Bitcoin won’t reach its capped limit of 21 million coins any time soon, so it’s safe to say that nothing will change about the way Bitcoin works in our lifetime. Its future remains certain, regardless of how many Bitcoins are there in circulation. The end of new Bitcoins entering circulation definitely be a huge milestone, and will shift the incentives from mining to transaction fees.
This may pose a challenge to network’s security but could also stabilize Bitcoin’s value as a deflationary asset, potentially boosting its appeal as “digital gold”. Also, Bitcoin could see a wider global integration as traditional and digital finances become more and more intertwined.
All things considered, it will be exciting see to Bitcoin make its way from from a niche digital novelty to a mainstream financial asset.
If you have ventured online in the past 15 years ago, the chances are you have come across the term “Bitcoin”. However, despite its popularity, most people still don’t really have a grasp on what Bitcoin is, which is why we have put together our Bitcoin for Dummies guide to help you understand:
Let’s start from the beginning and explain how and why Bitcoin was invented.
Before we get into the details of Bitcoin for beginners, let’s talk about its inception first, as it will help you gain a better understanding of some of the concepts that underpin the idea of Bitcoin, such as blockchain technology, digital ledger, and mining.
Bitcoin was invented by an individual or group of individuals going under the pseudonym Satoshi Nakamoto. They still remain anonymous, and their true identity is still a cause for much speculation. Bitcoin was introduced to the world in 2008 through a white paper that explained the need for a decentralized digital currency.
This digital currency operates without the need for a central financial authority or institution, such as a bank or government. It removes all the intermediaries in the process and introduces a peer-to-peer system cash system in the digital realm.
Bitcoin, in a way, was born out of disillusionment with the existing financial system, especially after the economic crisis of 2008, and provide an alternative to the existing system, which has failed many.
Bitcoin’s advantages are better transparency, security, and resistance to control or censorship, at least for the time being. Put in bitcoin for dummies terms, it is a peer-to-peer system that allows for direct financial transactions between users, backed by cryptography and running on blockchain technology.
It also opened the door for the cryptocurrency movement that is going stronger than ever.
| 💡 Did You Know: | The smallest denomination of Bitcoin is known as a “Satoshi,” named after Bitcoin’s creator, Satoshi Nakamoto. One Satoshi is equal to 0.00000001 BTC. |
Bitcoin is the first digital cryptocurrency that is independent of traditional, centralized banking systems and is used for making online transactions between parties, buying good or services, or as a way of investing your money, much like stocks.
But, unlike the dollars or euros in your wallet or bank account, Bitcoin exists on a network of computers worldwide, which is kept in operation by complex mathematical computations. Every Bitcoin transaction is recorded on a public ledger called the blockchain, which ensures transparency and security.
This means that once a transaction is made, it’s visible to anyone and can’t be tampered with, making fraud extremely difficult. Bitcoin supply is capped at 21 million coins, and its value increases over time as the demand grows and Bitcoin becomes more scarce.
This scarcity mimics the real-life scarcity and finite supply of precious metals, such as gold. Another built-in mechanism that keeps Bitcoin scarce and impervious to inflation, is Bitcoin halving, which is explained in simple terms in our video:
Now that you know what Bitcoin is and how and why it came to be, let’s get on to our Bitcoin for dummies explanation of how it works, as well as how to earn Bitcoin money.
Bitcoin, the first and most well-known cryptocurrency, operates using blockchain technology. A blockchain is a decentralized and distributed digital ledger that records all the transactions across a network of computers.
The blockchain provides transparency, security, and integrity of data without the need for a central authority, effectively making Bitcoin a peer-to-peer digital currency. This means that transactions are done directly from one user to another, and each transaction is digitally signed with a unique set of cryptographic keys to ensure security.
These transactions are then broadcast to the Bitcoin network and await confirmation. Then, Bitcoin miners, who are participants in the network with powerful computers and rigs, take on confirming these transactions. They are called miners because the process of solving these complex mathematical equations is called mining.
The first miner to solve the puzzle and validate the block is rewarded with newly minted bitcoins and transaction fees. This not only incentivizes miners to maintain and secure the blockchain, but also controls the creation of new bitcoins.
Once a transaction is confirmed and added to a block on the blockchain, it is irreversible and publicly recorded, which provides transparency and ensures trust in the system. Because blockchain acts as a public ledger, anyone can trace Bitcoin transactions back to their source.
Next up in our Bitcoin for dummies guide is how new Bitcoins are created.
Bitcoin, for beginners especially, can be an overly complex subject, especially when it gets to mining, so we’ll keep as simple as possible. Bitcoin utilizes the Proof of Work (PoW) consensus mechanism to secure its network, validate transactions, and create new blocks on the blockchain.
This process, known as mining, requires participants to solve complex mathematical puzzles. It not only keeps the blockchain secure and in operation but also introduces new Bitcoins into circulation. Mining requires specialized hardware, software, and a significant amount of electricity. Most of Bitcoin mining occurs in the US.
Initially, miners used standard computer CPUs to mine Bitcoin, but as the network grew, the difficulty of the mining puzzles increased, which required more powerful hardware. Today, miners use Application-Specific Integrated Circuits (ASICs), which have tremendous processing power and efficiency compared to general-purpose hardware.
The mining process starts with gathering recent transactions into a block, and the miners then apply a cryptographic hash function to the block’s data. The goal is to find a hash that meets the network’s current difficulty target, a measure that ensures a consistent time interval between blocks added to the blockchain.
This difficulty adjusts approximately every two weeks to maintain a ten-minute block discovery time, a design choice that is meant to stabilize block creation rate regardless of total network hashing power.
Finding the correct hash is a matter of trial and error, as it requires guessing multiple nonce values (a random piece of data added to the block’s header) until the miner finds one that produces a hash within the target range.
This process is highly competitive and resource-intensive, as the first miner to find a valid hash is rewarded with newly minted bitcoins (the block reward) and transaction fees from the transactions included in the new block.
For a more concise and visual explanation, check out our video on cryptomining:
The block reward is 6.25 bitcoins, a figure that halves approximately every four years in an event known as “halving.” The next Bitcoin halving event is expected to take place on April 19, 2024, after which the mining reward will be halved to 3.125 BTC.
This mechanism ensures that the total supply of Bitcoin will never exceed 21 million coins, making Bitcoin a deflationary asset. Due to the competitive nature of mining, many miners join mining pools to combine their computational resources and share the rewards.
The rewards can then be reaped using a digital Bitcoin wallet with public and private keys, which is explained in the next section of our Bitcoin for dummies guide.
Bitcoin wallets and the concept of private and public keys are crucial for understanding how Bitcoin transactions work. A Bitcoin wallet is essentially software that allows you to send and receive Bitcoin and keep track of your Bitcoin balance and transactions.
Unlike a physical wallet, your Bitcoin wallet doesn’t actually store your Bitcoin. Instead, it stores private and public keys associated with your Bitcoin addresses. These keys provide you with the ability to access and control the Bitcoin transactions that are recorded on the Bitcoin blockchain.
The private key is the equivalent of the PIN code to your bank account. It is basically an alphanumeric code that allows a you to access and manage your Bitcoin holdings. It’s meant to be kept secret and is used to sign transactions, proving ownership of the Bitcoin being sent.
Obviously, you should be the only one who has your private key, as anyone who has it can access and spend your Bitcoin. The private key is generated randomly when a Bitcoin wallet is created and can also be used to derive the wallet’s public key and Bitcoin addresses.
As we have already mentioned in out Bitcoin for dummies explanation of public key, a public key in Bitcoin is derived from a private key through a complex mathematical algorithm. It is essentially a cryptographic code that enables you to receive transactions.
Unlike the private key, the public key is meant to be shared with others. It is used to generate a Bitcoin address, a more user-friendly version of the public key, which acts like an account number to which other users can send you Bitcoin.
The public key plays a crucial role in the digital signature process, verifying the transaction without revealing the private key. Now, no Bitcoin for dummies is complete without explaining how to mine for Bitcoin, and ultimately, how to earn Bitcoin assets, which we explained in the chapter below.
| ⚠️ Note: | The total computing power of the Bitcoin network is far greater than that of the world’s top supercomputers combined, making it one of the most secure computing networks. |
Let’s get started with the Bitcoin for dummies explanation of BTC advantages.
If you have more questions about Bitcoin cryptocurrency, make sure to check out the FAQ section of our Bitcoin for dummies guide.
The last Bitcoin is expected to be mined around the year 2140. This projection is based on the halving mechanism embedded in Bitcoin’s protocol, which reduces the mining reward by half approximately every four years.
This deliberate design controls the rate at which new bitcoins are created, ensuring that the total supply will gradually approach the maximum limit of 21 million.
When all 21 million bitcoins are mined by around 2140, miners will no longer receive new bitcoins as rewards. Instead, their compensation will shift entirely to transaction fees paid by users.
This change could affect the incentive structure for miners, who play a crucial role in maintaining and securing the Bitcoin network. The absence of new Bitcoin entering the system is expected to contribute to its deflationary nature, potentially increasing its value if demand continues to grow.
The long-term impact on Bitcoin’s security and value will largely depend on how the network adapts to these changes and the sustained demand for transactions.
Yes, Bitcoin can be converted to cash through various means, including cryptocurrency exchanges, Bitcoin ATMs, and peer-to-peer transactions. Once sold on these platforms, the funds can be withdrawn to a bank account or, in some cases, withdrawn as cash.
As the technology continues to evolve, Bitcoin’s role in the global economy is likely to expand, offering new opportunities and challenges. For beginners, understanding how Bitcoin works is the first step into the world of cryptocurrencies, and we hope our Bitcoin for dummies has helped you enter it.
There is no doubt that Bitcoin, along with blockchain technology, has revolutionized the financial landscape, challenging the traditional notions of money, finance, and investment. Its decentralized nature, combined with the potential for high returns, makes Bitcoin attractive to many, from individual enthusiasts to institutional investors.
And to learn just how attractive, check out our video on Bitcoin price prediction after the 2024 halving right here:
If previous Bitcoin halvings are anything to go by, it seems like Bitcoin is set to sore once again and blow past all the previous records.
Even though Bitcoin is the first, oldest, and most well-known coin, there is a whole world of others digital currencies out there. In fact, there are over 23,000 cryptocurrencies in existence today other than Bitcoin, and each is considered an altcoin. In this article, you will find out:
Keep on reading for more.
Altcoins are defined as any cryptocurrencies other than Bitcoin. The term “altcoin” is a portmanteau of “alternative” and “coin”. Simply put, altcoins are alternatives to Bitcoin. Some consider them to be an alternative to Ethereum, while others view it as the biggest altcoin of them all.
This confusion is because Ethereum also introduced new ideas and functionalities to blockchain, allowing for the creation of smart contracts and decentralised applications (dApps). Altcoins were invented to improve upon Bitcoin’s blockchain’s existing features and limitations.
| 💡 Did You Know: | The first altcoin to emerge as an alternative to Bitcoin was Namecoin, which was introduced in 2011. |
Since nearly every active altcoin brings something unique, whether it’s better transaction speed or energy efficiency, every crypto investor and enthusiast should know how they work, what they are used for, their types, as well as the best altcoins you should buy, as shown in our video:
There are multiple different altcoin categories and types, depending on how they work and what they are used for. Here are the main altcoins you need to become familiar with:
Stablecoins are coins pegged to the price of another asset to minimize the volatility typical of digital coins and crypto assets. The majority of top altcoins are tied to the value of the US dollar, but altcoins can also be pegged to the price of other fiat currencies, such as the Euro, or even commodities, like gold or oil.
Obviously, the name comes from their stable value, which makes them ideal for daily transactions and payments, or even as a safe haven in volatile markets. They are also a great choice to be used for savings. Conversely, they are not a popular choice for investment due to their stable price.
The most popular one is Tether (USDT), which is tied to the value of the US dollar, and is often a stablecoin of choice for trading and hedging. Another stablecoin that needs to be mentioned is Dai (DAI), which runs on Ethereum’s blockchain, also pegged to the US dollar, but is backed by Ether.
PoW or mining-based altcoins utilize a process called mining to validate transactions and increase the supply of coins in circulation. Crypto miners use devices and rigs with significant computing power to solve complex mathematical equations.
Usually, the first miner to successfully solve the equation is granted the right to verify a block of transactions and receive crypto as a reward. Bitcoin introduced this method to the market. One of the main disadvantages of PoW altcoin is the power consumption needed to solve the mathematical puzzles.
The most well-known altcoins include Litecoin (LTC), Dogecoin (DOGE), ZCash (ZEC), Monero (XMR), and Bitcoin Cash (BCH).
PoS or staking-based altcoins rely on the process called staking for transaction verification and the creation of new coins. Altcoin holders stake their cryptocurrency assets, similar to clients leaving deposits in a bank in order to earn interest, so they can be utilized for transaction processing.
The validator is then chosen to validate a block based on factors such as the amount staked and their time online. In exchange for their work, they receive a crypto reward. The first PoS altcoin was Peercoin. Although not a very well-known coin, it nonetheless introduced staking as a more energy-efficient process than mining.
The most popular PoS coins are Ethereum 2.0 (ETH), Cardano (ADA), Polkadot (DOT), Solana (SOL), Tezos (XTZ), Algorand (ATOM, and Cosmos (ATOM).
DeFi (short for Decentralized Finance) altcoins are used to recreate traditional financial systems and institutions such as banks and exchanges using blockchain technology. They utilize smart contracts on blockchains, with Ethereum being the most popular choice.
DeFi altcoins aim to replace old concepts like banks with peer-to-peer financial services, including loads, mortgages, and everyday banking, as well as more complex transactions like asset trading.
The most notable DeFi altcoins include Ethereum (ETH), Maker (MKR), Dai (DAI), Uniswap (UNI), Aave (AAVE), Compound (COMP), and Curve Finance (CRV).
With governance coins, crypto holders can be given voting rights in order to participate in the decision-making process in regards to how a particular project will develop. This enables the community to vote on important matters without relying on centralizes authority or governance.
They are also a crucial element of numerous DeFi projects, dApps, and DAOs (Decentealized Autonomous Organization), and just about any other application that aim to function in decentralized, open, and community-driven manner.
Notable examples include Maker (MKR), Aave (AAVE), Compound (COMP), Uniswap (UNI), Curve Finance (CRV), Synthetic (SNX), and Yearn.finance (YFI).
These altcoins are designed to provide access to services and functionalities within a blockchain network. This might include anything from paying network fees to purchasing services. Although utility tokens can be held after their purchase, they are meant to be used in a way that keeps the blockchain running.
For instance, Ether, which runs on the Ethereum blockchain, is used as a means of payment for transactions in the blockchain and virtual machine. Another example is TerraUSD (UST), which was a coin that relied on utility tokens to peg its value to the dollar.
Utility coins can also be used to purchase storage space on a network and keep the information safe, which is the case with Filecoin.
| ⚠️ Note: | Another altcoin type is meme coin, which is centered around internet memes and pop culture references. Dogecoin (DOGE) and Shiba Inu (SHIB) are the most notable meme coins. |
There are multiple ways in which Bitocin and altcoins differ from each other, including their purpose, origin, and technology, as well as both Bitcoin and altcoin market cap, Check out this detailed comparison of the two:
Bitcoin was launched in 2009 by an individual or a group of individuals under the pseudonym Satoshi Nakamoto. It’s considered a progenitor of digital cryptocurrencies that use blockchain technology.
Altcoins were created to expand and improve upon Bitcoin features and to explore additional applications that go beyond what Bitcoin was originally intended for. As we’ve mentioned previously, the first altcoin, Namecoin, was invented in 2011.
When it comes to consensus mechanisms, Bitcoin uses Proof of Work (PoW) to keep its blockchain secure and validate all the transactions. Despite the fact that this type of consensus mechanism is very secure, it’s also come under criticism because it consumes a lot of electricity and because of the relatively slow speed of transitions.
Altcoins have introduced a number of innovations and improvements on the blockchain and consensus mechanism side of things, including those that are designed to address the most common shortcomings of the PoW model used.
The biggest altcoin, Ethereum, has transitioned to the Proof of Stake (PoS) consensus mechanism, which is a lot more energy-efficient and features quicker transactions. Also, there are altcoins that use delegated PoS or Proof of Authority mechanisms for different purposes, such as scaling or improving security.
Bitcoin was born as an alternative to traditional currencies, mainly out of frustration with banks and financial institutions during the global economic crisis in 2008. Also, its aim was to remove centralized intermediaries altogether and enable peer-to-peer transactions. Gradually, it has become a means of storing value digitally, and is sometimes thought of as “digital gold”.
Altcoin cryptocurrencies can have a much wider spectrum of application and use cases. For example, some aim to be faster and more scalable forms of digital cash, which is the case with Litecoin or Bitcoin Cash. Others, like Ethereum, are designed for very specific purposes, such as dApps.
Finally, coins like Monero and Zcash have been created to enable transactions that prioritize privacy, or to support the DeFi system, which is the case Uniswap and Aave.
As the most widespread and popular coin, it has a huge influence on the entire crypto market and its dynamics. For instance, the upcoming Bitcoin halving in April has everyone paying attention, since its price before and after the halving can also significantly impact altcoin price.
While some altcoins tend to follow Bitcoin price changes and trends, others are more impacted by new technological developments, altcoin news, or even how the how the market views their specific niche. In other words, the altcoin market is way more fragmented than that of Bitcoin and can act in a more volatile manner.
In terms of liquidity, Bitcoin takes the top spot on the cryptocurrency market, and as a result, it can easily be sold, bought, or traded without significantly impacting the price. It is also widely adopted as a means of cross-border transactions and investment and is also accepted by merchants.
By contrast, there are huge gaps in liquidity and adoption among different altcoins. Top altcoins such as Ethereum, Ripple, and Litecoin enjoy significant liquidity and are accepted for a variety of uses. However, fairly new or small altcoins have their work cut out for them if they want to gain widespread adoption or improve their liquidity.
The altcoin landscape is extremely diverse, which means that it features many currencies with significant pros and cons in comparison with Bitcoin.
It’s somewhat difficult to give our predictions about the best altcoins to invest in due to price volatility. However, there are some parameters that can help your choice a lot easier, such as altcoin currencies featuring innovative technology. Here are the best altcoins to buy in 2024:
As you can see, the altcoin ecosystem is incredibly large and diverse, with over 23,000 alternative cryptocurrencies battling not only for a larger market cap but also for their chance to introduce new ideas and innovation.
From dApps to staking, altcoins cater to different needs and niches and improve upon Bitcoin’s limitations. We hope that we have succeeded in helping you learn about altcoin, its types, applications and advantages.
Despite all the volatility, risks, and regulatory uncertainties, it is immediately obvious that the pros of altcoins outweigh the cons by a huge margin, which makes them essential for the future of cryptocurrencies and blockchain alike.
As we know, the maximum number of bitcoins is set at 21 million in order to reflect the finite amount of precious metals in real life. Every four years, the reward for their mining is cut in half, thanks to the built-in mechanism known as Bitcoin halving, making each of the Bitcoin halving dates a huge event.
Bitcoin halving is a built-in event in the Bitcoin protocol that halves the reward for the mining of new blocks. Halving happens approximately every four years or after every 210,000 new blocks of the total supply of 21 million have been mined.
This is the reason why Bitcoin halving always causes such a stir in the crypto community and on the cryptocurrency exchanges. With this mechanism, the rate at which new bitcoins are created is reduced, ensuring their gradual distribution. This also means that the final Bitcoin won’t be mined until the year 2140. Check out our video on crypto mining for more information:
Another reason why Bitcoin halving exists is to prevent inflation through the controlled supply model. This artificial scarcity mimics the real-life extraction of precious metals, such as gold, which requires more effort over time.
With that in mind, let’s examine when the next halving will occur.
| 💡 Did You Know: | The fixed supply of Bitcoins mimics the real-life limited supply of gold in existence. |
Most current predictions put the next Bitcoin halving date around April 19, 2024.
There reason why It’s been challenging to provide the exact Bitcoin halving dates is because the time it takes to mine new blocks is variable. In theory, Bitcoin shoots for a 10-minute average block time, but in reality, there are fluctuations in mining activity and efficiency.
Although the network makes adjustments to mining difficult in order to keep up with the average, rapid changes in the network’s computing power can still lead to variations. All of this prevents the prediction of the exact date until we are close to the actual event.
Throughout history, Bitcoin has gone through several halving events, all of which have had a significant impact on the market. Let’s take a look at each one individually.
The first halving took place on November 28, 2012. Before the event, the block reward was set at 50 BTC. After the halving, the block reward was halved to 25 BTC. This was the first big test for Bitcoin, as it demonstrated the effect of halving on the market, as well as mining.
Following the Bitcoin halving date, the price skyrocketed from $12 to as much as $1,000 by the end of 2012. Because of the now-reduced supply of coins, demand increased, leading to a dramatic price surge.
The second halving occurred on July 9, 2016, further reducing the block reward from 25 BTC to 12.5 BTC. The price spiked significantly in the following months, reaching around $2,500. This was attributed to the acceptance of Bitcoin as a valuable asset and the fueled interest in the cryptocurrency market.
So far, both Bitcoin halving dates have led to a spike in price.
The third halving happened on May 11, 2020. After May 2020, the block reward dropped to 6.25 BTC. This time around, the price reaction was somewhat muted. However, in the next few months following the halving, the market saw a tremendous bull run. By early 2021, the price surged past $60,000, surpassing any Bitcoin halving price prediction.
This was due to a powerful combo of institutional investments in Bitcoin and its acceptance as a means of payment.
Based on the historical trends and the current Bitcoin price, the estimated numbers around the 2024 halving, and by the end of the year could look like this:
| ⚠️ Note: | According to some predictions, Bitcoin is expected to reach a new record of $88,000 during 2024. |
Although it’s difficult to accurately predict when is the next Bitcoin halving, here are some things that we know for certain, based on already established Bitcoin protocols and mechanisms, as well as the aftermath of the previous Bitcoin halving dates:
This chart shows how the price of Bitcoin has changed before and after each of the Bitcoin halvings:
Bitcoin price before and after each Bitcoin halving.
Yes, Bitcoin halving in April 2024 will significantly affect mining because it will reduce the block reward by half. But, the halving event will impact mining in ways other than the reward price. These include:
The last Bitcoin halving event was on May 11, 2020. After the halving, the block reward was reduced to 6.25 BTC.
It’s extremely difficult to say with certainty what Bitcoin’s price after halving will be or even when is the next Bitcoin halving. However, based on the basic economic principles, history of Bitcoin prices before and after the halving events, as well as market sentiment, we can speculate on the following:
It would be an understatement to say that Bitcoin halving on April 19, 2024, is the most anticipated event within the crypto community. Based on the aftermath of previous Bitcoin halving dates in 2012, 2016, and 2020, there is a strong historical precedent for Bitcoin’s price increase.
We are definitely in for a ride in 2024 as far as Bitcoin mining and halving is concerned, and it’s going to be very interesting to see if Bitcoin will be able to surge past the $100K mark. As always, halving will be determined by a number of factors and their interplay, such as the global economic situation, market speculation, and supply and demand for new coins. Miner and investor behaviour will also play a really big role, especially if the price doesn’t go up and compensate for the reduced reward.
One thing is for sure: the halving event will generate significant attention, not only in the crypto community but also in the media, as well as plenty of public interest. And as always, there will be at least one thing that nobody saw coming.
The historic launch of spot Bitcoin exchange-traded funds (ETFs) in the United States has led to a sell-off in the cryptocurrency market. Despite this, the ETFs have been successful in their first week of trading, a sentiment echoed by industry analysts.
From the first day of spot Bitcoin ETF trading on 11 January, Bitcoin’s value has fallen 6.6 percent from nearly $49,000 to $42,876. This sharp decline occurred mostly in the first two days of trading, with the intra-week low reaching $41,753.
Debut of spot Bitcoin EFT
While the spot Bitcoin ETFs did not cause a spike in Bitcoin’s price in their first week of trading as some prominent investors had expected, the funds themselves have had a successful start. The debut of spot Bitcoin ETFs in the U.S. was one of the most successful ETF launches in terms of trading volumes, with ten funds reaching a combined volume of $10 billion in the first three days.
Bloomberg ETF analyst Eric Balchunas noted that spot Bitcoin ETFs have seen unprecedented activity and volumes since their launch. He pointed out that all 500 ETFs launched in 2023 had reached a combined volume of $450 million so far, which is 2,100 percent less than what the spot ETFs achieved in just three days.
Most of the trading volumes came from the Grayscale Bitcoin Trust ETF (GBTC), which accounted for about 50 percent of the combined $10 billion volume in the first three days. GBTC has traded more than $6.3 billion so far, handling around $2 billion per day in the first two days of trading.
However, GBTC has seen massive selling following the ETF launch, with the fund seeing $1.2 billion in net outflows in the first three days of trading. While GBTC has been offloading large amounts of Bitcoin in the first days of trading, other spot Bitcoin ETFs have been increasing their Bitcoin holdings.
In the first four days after launch, GBTC sold a total of 27,122 Bitcoin, or 4.4 percent of its total initial holdings of 619,200 Bitcoin. On the other hand, other ETF issuers, including BlackRock, Fidelity, and ARK Invest, bought at least 40,000 Bitcoin combined.
BlackRock’s iShares Bitcoin Trust (IBIT), the second-largest spot Bitcoin ETF by holdings, increased its assets from 2,621 Bitcoin on January 11 to as much as 25,067 Bitcoin on January 17. According to the latest available data from ETF issuers, the spot ETFs hold 651,819 Bitcoin combined, or 3.32 percent of all 19.6 million bitcoins that have ever been issued.
The launch of spot Bitcoin ETFs in the U.S. has been seen by many as a “sell-the-news” moment, with some analysts suggesting that more pressure could come from the futures market. They believe that we’re likely seeing a short-term positioning adjustment and not a long-term trend reversal. However, unwinding an increase of more than 13,000 futures contracts is likely to create some churn in the price action.
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Blackrock, the world’s largest asset management company, may potentially spearhead a Wall Street bull run.
In recent months, the cryptocurrency market has been on a feverish surge, with Bitcoin leading the charge, buoyed by sky-high expectations. While some attribute this newfound optimism to an unexpected shift from the Federal Reserve, it has led to Bitcoin’s price surging beyond US $35,000 per coin, a level not seen since early 2022. This price rally has had a ripple effect on other major cryptocurrencies like Ethereum and XRP, propelling them to higher valuations, thereby instigating growing fears of a possible “rug pull” in the Bitcoin market.
Arthur Hayes, a renowned figure in the world of Bitcoin and cryptocurrencies, has sounded an alarm, suggesting that the entire crypto space could be unwittingly edging towards a “massive calamity.” Hayes specifically points fingers at two formidable forces: BlackRock and the U.S. government, warning that their involvement may potentially spell doom for Bitcoin.
The crux of this concern revolves around the expanding influence of BlackRock and the ongoing development of a Bitcoin spot exchange-traded fund (ETF). Hayes, a co-founder of BitMex, a pioneering crypto derivatives platform, articulates the risk, stating that if BlackRock’s Bitcoin spot ETF grows too substantial, it could threaten the very essence of Bitcoin itself. The ETF accumulates a significant amount of Bitcoin, which remains immobilized, essentially taking a substantial portion of Bitcoin out of circulation.
The situation has evolved rapidly. In June, BlackRock ignited a competitive race on Wall Street to introduce a much-anticipated U.S. Bitcoin spot ETF, a feat that had faced years of rejections from the Securities and Exchange Commission (SEC). As the summer progressed, expectations mounted that a Bitcoin spot ETF in the U.S. could become a reality. This sentiment was further bolstered when Grayscale, a crypto asset management giant and part of the Digital Currency Group, achieved a significant legal victory in its quest to transform its flagship Bitcoin trust into a fully-fledged Bitcoin spot ETF.
Grayscale stands out as the largest publicly known holder of Bitcoin, boasting a stash of nearly 650,000 Bitcoin, which is four times the holdings of MicroStrategy, a software company that has been accumulating significant quantities of Bitcoin since 2020. As the SEC continues to deliberate on multiple Bitcoin spot ETF applications, the market appears to be banking on the possibility of such an ETF becoming accessible to traders and the broader Wall Street community in the coming months.
Hayes further underscores the concern by emphasizing the potential for Bitcoin spot ETFs, requiring institutions to acquire substantial volumes of Bitcoin, to place them in a commanding position over Bitcoin’s consensus mechanisms. Notably, BlackRock’s considerable holdings in some of the largest Bitcoin mining operations raise the spectre of these Wall Street giants not only creating Bitcoin spot ETFs but potentially venturing into Bitcoin mining ETFs as well.
A lingering question has arisen though: Could the current market exuberance ultimately lead to a catastrophic turn of events in the future? The prospect remains uncertain, and anxieties are compounded by the notion that Wall Street asset managers, including BlackRock, are often perceived as “agents of the state.” Hayes argues that they tend to act in accordance with what the state dictates, fuelling fears that the U.S. might be waging a covert war against Bitcoin and cryptocurrencies—a concept that has come to be known as Operation Choke Point 2.0.
In the current climate, the traditional financial sector has distanced itself from the cryptocurrency industry and market. A series of bank failures earlier this year have been linked, by some, to their involvement in cryptocurrency services. There are concerns that these banking crises may have been partly orchestrated by the U.S. government and regulators.
Operation Choke Point originally emerged in 2013 as a U.S. Department of Justice initiative aimed at discouraging banks from collaborating with firearm dealers, payday lenders, and other businesses deemed high-risk for fraud and money laundering. In September, Changpeng “CZ” Zhao, the CEO of Binance, issued a frank warning regarding “Operation Chokepoint 2.0.”
These developments underscore the complex and evolving landscape surrounding Bitcoin and the broader cryptocurrency market. As the regulatory and institutional environment continues to shift, the crypto industry faces a myriad of challenges and uncertainties that may well shape its future trajectory.
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In the last 24 hours, the total volume of the global crypto market was $45.40 billion, a decline of 5.94 per cent. The global crypto market cap, however, saw a bullish increase of 2.98 per cent over the previous day, reaching $1.20 trillion at 10 am IST on Wednesday. Coinmarketcap reported that DeFi was trading at $4.87 billion, accounting for 10.72 per cent of the total crypto market 24-hour volume.
Bitcoin (BTC) has recently seen a rise in price after previously hitting a low of $27,213, with its value approaching the $29,000 mark. BTC’s price had been fluctuating between $26,500 and $28,500, with neither the bulls nor the bears able to break out of this range. Despite multiple attempts by buyers to overcome the $29,000 resistance, they have been unsuccessful.
Bitcoin remains the top cryptocurrency on Coinmarketcap with unchanged market cap.
On April 3, BTC’s price dropped to $27,213, but buyers were quick to make purchases, resulting in a price increase. Since March 18, the cryptocurrency has been hovering between the $28,000 resistance and $29,000 price levels. Despite this volatility, BTC remains in the bullish trend zone, with buyers currently leading over sellers. The cryptocurrency is currently trading above the 21-day SMA, indicating that bulls are in control of the market. Buyers are working to keep BTC’s price above the $29,000 overhead resistance.
If buyers are successful, the price of Bitcoin is expected to reach the psychological marker of $30,000, with further bullish momentum taking it up to the high of $31,000. However, if the bears manage to halt this bullish scenario, the bearish momentum may persist and cause the price to drop below the 21-day SMA. This could result in increased selling pressure and a potential low of $25,200. If the price falls below the $25,000 support level, the downtrend is likely to continue. Currently, Bitcoin’s price is at level 60 of the 14-period Relative Strength Index, indicating that it still has room to increase further.
Bloomberg Senior Commodity Strategist Mike McGlone has stated that Bitcoin is more decentralised than other cryptocurrencies, such as Ether, making it “untouchable” despite ongoing regulatory pressures on the crypto industry. In a recent conversation with crypto podcaster Scott Melker on April 3, McGlone argued that those who do not have some exposure to the cryptocurrency market are “seriously silly.” Unlike other currencies, regulators cannot banish Bitcoin due to its decentralisation.
Despite the positive outlook for Bitcoin, its price has approached the $29,000 mark, with buyers aiming to revisit the overhead resistance at this level. However, the price is getting closer to the market’s overbought zone, which could impact its upward trend. Nevertheless, in a strongly trending market, the overbought condition may not last.
Bitcoin continues to maintain its position as the number one cryptocurrency on Coinmarketcap based on its market cap, which remains unchanged from yesterday. Its dominance at 10 am IST was 45.86 per cent, a decrease of 0.22 per cent over the previous day.
Ethereum (ETH) witnessed a 5.76 per cent increase in price to $1,913.00, with a 24-hour trading volume of $11.67 billion. A sustained momentum in Ethereum’s price against Bitcoin may benefit the overall altcoin market, as it tends to thrive from ETH’s display of strength against BTC.
Ethereum: The second largest cryptocurrency by market cap.
If buying pressure increases from current levels, Ethereum’s price may rise by 6% to challenge the next resistance level at $1,982. In a highly bullish scenario, the altcoin could surpass the $2,000 mark and reach the $2,093 resistance level, marking a 12% increase from the current price.
On-chain data analysis by IntoTheBlock indicates that the next significant resistance area lies between $2,046 and $2,902, where over 8.5 million addresses had previously purchased more than 26.69 million ETH at an average price of $2,537.
However, if profit-takers decide to take early profits, Ethereum’s price could correct downwards and break the $1,753 support level. This would expose ETH to further downside risks, leading to a free fall towards the 50-, 100-, and 200-day EMAs at $1,687, $1,603, or $1,589 levels, respectively.
Three days after US attorney John Deaton suggested a prolonged wait for Judge Analisa Torres’s summary judgment, Ripple’s price (XRP) broke below what was once a crucial support level of $0.507. This news reduced XRP’s bullish momentum, leading to a downtrend at the start of the month. However, community members remain optimistic and anticipate a favourable ruling, which provides investors on the side-lines with an opportunity to buy the altcoin at discounted rates.
Altcoins refer to all cryptocurrencies other than Bitcoin.
If this group of buyers takes advantage of the situation, Ripple’s price could climb back above the $0.507 resistance level, turning it back into support before facing the $0.531 area. If XRP surpasses this barrier, it could aim to reach the late March highs at $0.558, potentially opening the path for further gains.
Conversely, if selling pressure increases, Ripple’s price could continue its downward trend, breaking below the $0.477 support level. In extreme cases, XRP could drop further to hit the $0.443 level, which would represent a 12% decline from the current price.
Dogecoin (DOGE) was the most trending cryptocurrency for the second consecutive day, with a 1.46 per cent increase in price to $0.09776.
ICON (ICX) emerged as the top gainer, with a 16.52 per cent increase in price to $0.4412 and a 24-hour trading volume of $682.96 million. UNUS SED LEO was the top loser, experiencing a decline of 1.23 per cent in price to $3.38, with a 24-hour trading volume of $1.25 million.
Tether (USDT) maintained a stable price, experiencing no change in the last 24 hours and trading at $1, with a 24-hour trading volume of $33.88 billion. It ranked third on CoinMarketCap. Solana (SOL) experienced a 3.84 per cent increase in price to $21.22 in the last 24 hours.
Avalanche was trading at $18.13, up by 5.95 per cent, while its 24-hour trading volume was $187.48 million. Cardano (ADA) witnessed a 1.30 per cent increase in price and is ranked seventh, with a 24-hour trading volume of $375.43 million. Shiba Inu saw a 0.93 per cent increase in price to $0.00001141.
Yearn.finance experienced a 5.02 per cent increase in price to $8,787.63 in the last 24 hours, while its 24-hour market cap was $288.17 billion. The volume of DeFi was $4.87 billion, accounting for 10.72 per cent of the total crypto market 24-hour volume.
With its in-depth analysis and coverage of the latest news and trends, AIBC News is the best source of information for those seeking to stay informed and make informed decisions in the crypto market. Head over to our news site for our daily market analysis, expert insights, and breaking news updates on everything related to Blockchain, Crypto, AI and emerging tech.
https://youtu.be/p5GHF7Scubc
This news was shared at the AIBC Europe Summit in Malta during a fireside chat between Michael Saylor, Founder, Chairman and CEO of MicroStrategy and Mike Costache, a blockchain investor and entrepreneur since 2016. The founding member of the BMC, and renowned bitcoin investor, Michael Saylor, commented on the matter: “Bitcoin mining is rapidly becoming more efficient. In 2021, mining efficiency, the actual petahash per megawatt, has been growing quarter over quarter. In Q3, it increased 23%. This is hyper growth, and this is not well-appreciated by the mainstream and most market players. At BMC, we are all coming together in order to educate the public and gather some insight about what’s happening in the bitcoin mining business and how we are using energy.”
Watch the fireside chat below:
https://www.youtube.com/watch?v=cnlPdn5NNxk
The Bitcoin Mining Council was created in May by nine leading North American mining companies to promote sustainable energy use and industry transparency. Elon Musk’s tweets about crypto mining’s “insane” energy use have caused the Bitcoin rate to plummet last May. After this, Michael Saylor, a renowned Bitcoin evangelist whose personal crypto holdings currently amount to 17,732 BTC (worth $1 billion) plus another 114,042 BTC (worth $6.8 billion) held by his publicly-traded company MicroStrategy, initiated the conversation between market leaders. Elon Musk attended the first meeting and called it “potentially promising.” This reaction was followed by his public promise to resume accepting Bitcoin for Tesla purchases when there’s confirmation of reasonable (~50%) clean energy usage by crypto miners.
Mining bitcoin or any other form of cryptocurrency is an energy-intensive process. Just as the energy industry is forced to adapt and embrace various types of renewable energy, so does cryptocurrency mining. According to the recent findings from BMC published in October, “the global mining industry’s sustainable electricity mix had grown to approximately 57.7%, during Q3 2021, up 3% from Q2 2021, making it one of the most sustainable industries globally.” One of the most important figures published by BMC relates to the fact that only 0.11% of the world’s electricity consumption is used for bitcoin mining.
GMT is now the 30th member to join the BMC in its campaign for industry transparency, sharing best practices, and educating the public on the benefits of Bitcoin and mining. The company has already shared its data for the latest BMC’s survey of the sustainable power mix, and is now actively working on a strategy to further prioritize the use of renewable energy in its operations. In the future, GMT intends to operate on 100% sustainable power.
About GMT:
On April 26, 2021, GMT launched its token backed by real computing power. The project’s goal is to simplify the mining process for everyone by handling the logistics, providing around-the-clock uninterrupted service, and securing the energy-efficient consumption costs. There are currently over 17,000 GMT token holders receiving daily bitcoin mining rewards without the hurdles of physical maintenance of the equipment.
During the first six months of the project’s existence, GMT increased the hash rate of the device park from 100,000 Th/s to almost 400,000 Th/s. The company’s strategy for the next two years is to take over 4% of the world’s BTC production, and 20% in the long term.