By FintechNews staff
-About 18.89 million bitcoins, out of a maximum of 21 million, have been mined and are now available to be bought and sold. But mining the final 10% isn’t expected to happen until February 2140, based on network estimates and bitcoin halving schedules, CoinDesk reported. The halving schedule is an inflationary control device where the reward for mining bitcoin is cut in half.
–One of the most enticing elements of Bitcoin is its stable and unchanging monetary policy, especially when compared to the reality of fiat and “crypto” currencies, whose supply and monetary policy might alter based on the decisions of a few people.
-The peer-to-peer (P2P) electronic money is sound, contrary to soft fiat money. Nobody has the power to inflate the supply of bitcoin the same way nobody can reduce it. The Bitcoin network is “rules without rulers,” and the rules are written in stone.
-With more than 90% of the Bitcoin supply already issued, scarcity is even more evident now.
-Although issued bitcoin can be traded on the market, most of it is held by people with no intentions of selling it. The “HODL” notion is popular in the Bitcoin community, and many people are determined to hold on to their BTC until it reaches full monetization and becomes a unit of account, allowing them to spend rather than sell.
-Once people, institutions, and governments start realizing how scarce Bitcoin is, a whole new level of FOMO (fear of missing out) will ensue. A supply shock might become inevitable because there is not enough supply to accommodate a sharp rise in demand from big players like hedge funds and central banks, triggering soaring prices until the complete collapse of the U.S. dollar.