Miners will dissolve in place in the year 2140? With a fixed total supply of 21 million, what will happen after all bitcoins are mined?

In recent comments, many new beginners have been asking about Bitcoin halving that occurs approximately every four years, what happens after all coins are mined? Where does the miner reward come from, and in what currency is the reward? What happens when the fixed total supply is not sufficient? Today, let's discuss the total supply of Bitcoin and miner rewards.

(This article is authorized to be reprinted from "Plain Blockchain." The original title is "Explainer | Bitcoin has a fixed total supply of 21 million, what happens after all coins are mined?" Original article here)

1. What is the total supply of Bitcoin? How do we know?

In 2009, Satoshi Nakamoto mined the genesis block of Bitcoin, generating 50 bitcoins. According to the Bitcoin mechanism, a new block is created approximately every 10 minutes, and the block reward is halved every 210,000 blocks.

For the first 210,000 blocks, the reward was 50 bitcoins per block. From block 210,001 to block 420,000, the reward was 25 bitcoins per block. Based on a block production time of around 10 minutes, every 210,000 blocks take about 4 years, known as the "halving" that occurs approximately every 4 years.

With a halving occurring every four years, around 210,000 blocks are generated. In the first four years, each block produced 50 bitcoins; in the second four years, each block produced 25 bitcoins; and in the third four years, each block produced 12.5 bitcoins, and so on until all bitcoins are mined.

This means that (50+25+12.5+6.25+3.125+1.5625+…+0.00000001)×2,100 ≈ 210,000 bitcoins will be mined until around the year 2140.

2. Can other tokens besides Bitcoin be mined?

Yes, other tokens besides Bitcoin can be mined. However, different tokens may require different mining equipment. If two tokens share the same algorithm, one mining rig can mine different coins.

Otherwise, it is not possible to mine different types of tokens with the same mining rig simultaneously, or the mining efficiency would be very low since mining rigs are specifically designed for certain algorithms.

Furthermore, mining rewards are specific to the token being mined. For example, mining Bitcoin rewards Bitcoin, while mining Litecoin rewards Litecoin. Therefore, the rewarded token depends on what you are mining.

3. What happens if there is not enough Bitcoin after all tokens are mined?

The unlimited issuance of fiat currencies by countries has led to the devaluation of money. The emergence of Bitcoin offers a solution to the problem of currency inflation.

As Bitcoin becomes more widely known, with a fixed total supply of 21 million Bitcoins, it can prevent currency inflation. Even after all Bitcoins are mined around 2140, if there is not enough, would it cause a currency shortage?

As mentioned earlier, the smallest unit of Bitcoin is a satoshi, which is one hundred millionth of a Bitcoin. The value of Bitcoin can be subdivided into very small amounts, so there is no need to worry in the short term.

Additionally, if by 2140 all Bitcoins are mined, and there is a shortage, Bitcoin is just one form of digital currency development. Besides Bitcoin, there are other options like Ethereum that can be used. However, if unlimited issuance is allowed, it would become similar to fiat currency and lose its value.

Furthermore, regarding the issue of mining rewards after all Bitcoins are mined, Satoshi Nakamoto mentioned that once a set amount of electronic currency is in circulation, the incentive mechanism can gradually shift to rely entirely on transaction fees.

Therefore, even if all tokens are mined, miners can continue to maintain the entire network system through transaction fees at that time.