Over 90% of the amount of bitcoin mining
Over 90% of the total bitcoin ever created has already been mined. As the financial network grows in popularity and uses worldwide, driving up demand for BTC, a sudden and severe supply shock may become unavoidable.
The only form of digital cash that properly distributes and trustless enforces a supply cap of 21 million coins through its consensus protocol.
One of the core aspects that makes Bitcoin appealing is its predictable and unchangeable monetary policy, especially in light of the reality of fiat and “crypto” currencies, the supply and economic policy of which can change based on the decisions of a select few people. In contrast to soft fiat money, peer-to-peer electronic cash is sound. Nobody can increase the supply of bitcoin in the same way that no one can decrease it.
We are still early
Even though “we are still early” has become a meme, it is most likely true. Only a tiny portion of society understands Bitcoin and its potential to empower ordinary citizens. People who live in privileged communities with high levels of freedom and individual rights may be skeptical of Bitcoin.
Different people interpret Bitcoin frequently. For example, it could serve as a store of value for someone living in the United States or the United Kingdom, where inflation isn’t as high. However, it still erodes purchasing power over time. On the other hand, for people living in places where war and totalitarianism are common, such as Palestine or Cuba, Bitcoin may be their only hope for financial freedom.
Bitcoin’s diverse use cases worldwide demonstrate its adaptability and the numerous ways it can benefit different people in different ways. Still, most people are unaware of how Bitcoin can empower them.
The predictable issuance of new bitcoin continues to be triggered every ten minutes on average as another block mine, regardless of people’s understanding of the monetary network.
With more than 90% of the Bitcoin supply already in circulation, scarcity becomes even more apparent. Although bitcoin can trade on the market, the vast majority of it own by people who have no intention of selling it.
However, much of the yet-to-be-issued supply is also not very liquid. This year has seen some of the world’s largest public bitcoin miners jump on the HODL bandwagon. Hut 8, a Canadian miner, has deposited all 256 BTC mined in November into custody. There is insufficient supply to accommodate a sharp increase in demand from big players like hedge funds and central banks. Hence, a supply shock may become unavoidable, resulting in soaring prices and the complete collapse of the US dollar.
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