What will happen when all the bitcoins are produced?
Only 21 million units of bitcoin will be produced. This number has not been reached yet. It is estimated to be completed in 2140. What will be waiting for us when 21 million Bitcoins are produced?
Only 21 million Bitcoins will be produced. Most of these bitcoins are currently produced. Bitcoin adedi produced until now is about 17 million. When the limit of 21 million is reached, no more bitcoins will be produced. This is always a constant supply, despite the ever-expanding national currencies. Governments like to increase their money supply when necessary. This leads to devaluation and eventually the wealth of the citizens is reduced.
A similar devaluation for bitcoin is not a question. When the number of Bitcoins included in the system decreases, their values increase more over time. The number of bitcoins given to mining every four years is reduced by half. The prize process starting with 50 Bitcoin dropped to 25 Bitcoin and then to 12.5 Bitcoin. In 2020 it will be 6.25.
While a government can constantly increase money supply, it has features that support the exact opposite of Bitcoin. Also lost Bitcoins can not be recovered and can not enter the system.
Bitcoin mining refers to the process of solving complex algorithms using computers. When the algorithms are resolved, new block operations are created and added to the block chain.
If the miners stop doing their jobs, the entire Bitcoin system will collapse. New miners are given to meet the efforts of the miners and to encourage them.
Probably in 2140 all Bitcoins will be produced and no more Bitcoins will be produced. That does not mean the Bitcoin world is collapsing. In addition to the "Hashing" awards, the Bitcoin protocol also includes transaction fees. These transaction fees encourage miners to continue their business. Once all of the bitcoins have been created, the miners will continue to earn their money.
At the same time Bitcoin's value will have to increase in order for transaction fees to be profitable enough to encourage mining. Fortunately Bitcoin has some features in place to provide this. Every reputable currency has an unlimited supply, and governments like to increase their money supply to whatever is desired. However, there is an important problem in increasing the money supply: the depreciation. The FED has lowered the value of the Dollar all over the world with the Dollar that was reprinted after the 2008 crisis.
As the value of Bitcoin increases, the transaction fees will also increase. There are two reasons for this: First, Bitcoin valuation, and second, people volunteering to pay more to speed up transaction approvals.
However, the value of Bitcoin must also increase considerably in order for this increase to be sufficiently incentive for mining.