Last Bitcoin Mined: What Happens Next? Uncover the Future of Mining23. July 2023
• Bitcoin mining is a process of verifying transactions on the blockchain and miners are rewarded with BTC for each block of transactions.
• Once the supply cap is reached, miners will no longer receive rewards but they will still play an essential role in verifying transactions.
• Transaction fees will eventually become the primary incentive for miners to continue long after the last BTC is mined.
What Is Bitcoin Mining?
Bitcoin mining is a process involving computer hardware to solve complex mathematical problems and verify transactions on the blockchain network. Miners are rewarded with a predetermined amount of BTC for each block of transactions.
How Much Have Miners Earned?
According to the Blockchain Council, more than 19 million BTC has been awarded to miners in block rewards, and according to Nakamoto’s white paper , only 21 million are available. Since 2010, fees and block rewards have netted miners over $50 billion, according to calculations shared by on-chain analytics firm Glassnode .
What Happens After All Coins Are Mined?
Once this cap is reached, miners will no longer receive rewards for verifying transactions. However, experts believe miners will always be essential to the Bitcoin ecosystem even after mining the last coins. Transaction fees will become the primary incentive for miners to continue long after all BTC is mined.
How Will Miners Be Compensated?
Currently, successfully validating a new block on the blockchain rewards miners with 6.25 BTC worth about $188,381 at current market rates. Miners also receive transaction fees as compensation for their efforts in verifying and recording transactions on the blockchain network.
Miners are essential components of Bitcoin’s infrastructure and despite capping out at 21 million coins, they will still be compensated through transaction fees once all coins have been mined. This shift from relying solely on block rewards incentivizes miners to continue providing support for Bitcoin’s network while earning revenue from verifying transactional data recorded onto its distributed ledger technology (DLT).