2023-07-02 09:35:02
News JVTech 2140, a momentous year for Bitcoin. Do you know why ?
Published on 02/07/2023 at 11:35
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There are events that mark a turning point in the history of a technology like the year 2000 bug. For Bitcoin, the year 2140 will be one of those momentous years. But do you know why?
Bitcoin, a well-established project
First, let’s go back to the origins of Bitcoin. Nearly 14 years ago, a mysterious individual known as Satoshi Nakamoto laid the groundwork for both virtual and financial revolution in a document called the white paper. In this text, Nakamoto communicated the principles of Bitcoin, describing in detail its operation and its fundamentals.
Among these elements, one of the key aspects of crypto mentioned in the white paper is the limit on the amount of bitcoin that can be issued. Concretely, its creator programmed the Bitcoin code so that there were never more than 21 million coins in circulation. This theoretically makes it a truly rare and valuable digital currency.
To issue new coins, it is necessary to extract them through a process called mining. To do this, individuals use the computing power of their computer hardware (ASICs, RIG) to solve complex calculations in order to validate transactions and secure the network. As a reward for their work, they receive newly minted Bitcoins.
However, the mining process becomes increasingly difficult over time. This is due to a mechanism called “halving”. Approximately every four years (~210,000 blocks mined), the Bitcoin protocol halves the rewards given to miners. Thus, the issued quantity of Bitcoins decreases exponentially over time.
Halving1234Year2012201620202024Starting block210 000420 000630 000840 000Initial reward (BTC)502512.56.25Final reward (BTC)2512.56.253.125
Despite this decrease in reward, there is a day when a miner will extract the last Bitcoin from the network…
2140: the year of the last Bitcoin?
According to estimates, it is in 2140 that the mining of the very last Bitcoin will take place. After that, in theory, no new Bitcoin can be created. Thus, miners will no longer receive Bitcoin rewards. This is why this year will be a pivotal date for the queen of cryptocurrencies.
For this reason, some people are concerned regarding the viability of Bitcoin following this date as it will simply mark the end of Bitcoin money creation. And who says more rewards, says less motivation to contribute to the network.
However, it is important to note that Bitcoin should continue to work. Indeed, the minors who will put their computing power to contribution will receive fees on each of the transactions.as is the case today.
It’s unclear if cryptocurrency will still be around a century from now, but if its adoption continues, its costs might be much higher due to the growing number of users on the network.
Of course, it is impossible to predict the future with certainty. In 100 years, many events can occur and significantly impact Bitcoin. Only time will tell if Satoshi didn’t forget a line of code…
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