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Nearly all Bitcoins have been extracted from the digital realm, leading to questions about the implications of this development.

Rising Scarcity of Bitcoins Mines: A Significant Shift in Bitcoin's Rarity, Price, and Future, Delivered in Simple Terms.

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2025 September 4 . 9:06 PM

2 min read

Approximately 93% of Bitcoin's total supply has already been mined – deciphering the implications

Nearly all Bitcoins have been extracted from the digital realm, leading to questions about the implications of this development.

The Bitcoin network, a pioneer in the world of cryptocurrency, boasts a unique self-regulating mechanism that adjusts mining difficulty to maintain a stable rate of block production. This mechanism ensures the network's security, even as the progressive rarity of new coin creation takes hold.

As of 2023, approximately 19.6 million Bitcoin units have been mined, leaving just 1.4 million yet to be discovered. By 2035, it is estimated that 99% of Bitcoin will have been mined, with the remaining fractions not expected to be produced until around 2140. This intrinsic scarcity, a hallmark of Bitcoin, makes it a unique asset in the current financial ecosystem.

The Bitcoin network's self-regulation and scarcity could offer opportunities in the future. As the value of Bitcoin becomes increasingly sensitive to fluctuations in demand, a liquidity premium could emerge, with circulating Bitcoin valued more than "lost" units. This premium, coupled with the increasing scarcity, could have profound implications for the cryptocurrency market.

When mining profitability decreases, the least efficient miners withdraw, causing the difficulty to decrease for those who remain. This dynamic is expected to continue, as transaction fees will play a crucial role in maintaining the mining process as block rewards become marginal. The increased scarcity of Bitcoin will ensure the permanence of mining, as transaction fees will ensure the network's continuity in the face of declining mining rewards.

Companies and individuals engaged in developing and optimising Bitcoin miners to improve mining efficiency and mitigate the impact of decreasing Bitcoin mining rewards are making significant strides. CryptoMiningFirm, for instance, uses AI smart contracts and operates eco-friendly mining farms in Europe and North America with transparent and compliant operations for over four years. Investment firms like Cathie Wood’s ARK Invest are also involved through stakes in crypto infrastructure companies such as Bitmine Immersion Technologies, which focus on improving crypto mining technologies.

Despite the progressive rarity of new coin creation, the security of the Bitcoin network will not be compromised. Gold's extracted reserves remain more available on the market compared to Bitcoin, underscoring the network's robustness. The Bitcoin network remains secure due to an automatic difficulty adjustment mechanism, ensuring that the network continues to function smoothly even as new coins become increasingly rare.

Investors will need to understand and adapt to the increasingly rare dynamic of Bitcoin. As the cryptocurrency market evolves, understanding the unique characteristics of Bitcoin's scarcity and self-regulation will be crucial for making informed investment decisions. The future of Bitcoin is one of enduring scarcity and security, offering an exciting prospect for those who embrace the digital gold rush.