RE: With 18 Million Bitcoins Mined…
…How Hard Is That 21 Million Limit?
“'[Mining rewards] dynamically adjust based on the network. … It’s a very complex economic environment. It’s not as simple as people think,”’said Antonopoulos, adding:
‘There are half a dozen variables that determine miner profitability [right now] including the cost of electricity, their access to bandwidth transaction, the block subsidy, the transaction fees at the time, bitcoin price, their local currency exchange rate, the type of equipment and how efficient it is at converting electricity into mining.’
As such, Antonopoulos says the concerns surrounding a transition from a block subsidy to purely transaction-based block rewards are grossly overblown.
‘Nothing magical happens when block subsidy drops to zero,”’said Antonopoulos. ‘It’s a very gradual and predictable change that happens over a period of 120 years. It’s already happening and every day [miners] make their decisions.’
While the 18th million bitcoin may not be the best reminder of the ongoing reality of a limited supply cap, the next upcoming milestone on bitcoin’s horizon assuredly will.”
People really need to step-back and take a long hard thought to the fact there are only 3 million Bitcoin left to be mined. Right now people are holding-out, waiting to buy at cheaper prices they tell themselves when in the future, we’ll be seeing the price for Bitcoin in the stratosphere and satoshis equaling what one coin previously went for.