There are certain facts in the crypto world that seem eternal. That every 210,000 blocks there will be a Halving in Bitcoin, that the Blockchain is impossible to hack, that David Schiff does not believe in cryptocurrencies. Despite which, one of the most important beliefs around cryptocurrencies is lies. Well, as a Binance report shows, there will never be 21 million Bitcoins.
The BTC design
Unlike traditional fiat money, Bitcoin is a currency designed from the start to follow certain fundamental criteria. This being precisely the advantage that BTC has over currencies such as the dollar. Well, since its operation is fixed in the programming of its Blockchain, it is immune to manipulations.
And among the features that were included in the Bitcoin code during its creation by Satoshi Nakamoto, is the limited number of coins that will ever exist. Setting the cap for the issuance of the cryptocurrency in the 21 million tokens.
This was done in this way, to create a deflationary mechanism that would allow the price of Bitcoin to continue increasing, instead of deteriorating over time, as occurs with fiat money. Which, as the years go by, is multiplying, due to constant government monetary issues.
There will be 21 million Bitcoin
Despite this, the idea that 21 million Bitcoin will exist at some point is wrong. There is a mathematical reason behind this, then, since Bitcoin is only divisible by 8 decimal places, it is impossible for the last block of Bitcoin rewards to be halved eternally.
So the amount of BTC that will ever exist is 20,999,999.9796. A little less than the expected 21 million.
However, at the end of the day, this figure will not have major practical implications in the lives of today’s crypto users. Well, the last Bitcoin will not be mined until, the year 2140.
This is thanks to the Halving in the cryptocurrency Blockchain, which reduce the amount of BTC issued by each block mined from time to time. Decreasing the rate of monetary issue more and more.
In addition, to the limitation on the number of Bitcoins that will ever exist, we would add the amount of them that have been lost forever. Due to, among other causes, loss of wallet passwords or transfers to wrong addresses. It is estimated that around 20% or 4 million Bitcoin are impossible to recover.
Thus, although the Binance report shows that there will never be 21 million Bitcoins. The deflationary mechanism devised by Satoshi Nakamoto still works perfectly. Which is of crucial importance, with only days to go before Halving occurs on the Bitcoin Blockchain.