90% of Bitcoin’s 21 million have now been mined

From the outset and Satoshi Nakamoto’s white paper, the monetary policy of the Bitcoin blockchain is as transparent as it is predictable. We know that there will be a maximum of 21 million Bitcoin on the blockchain, and not one more. Bitcoin which will be gradually introduced through the activity of miners. Besides, it was also expected that the number of Bitcoin that could be mined would gradually decrease. At the end of 2021, you should therefore know that 90% of all Bitcoin that will ever be on the blockchain has already all been mined.

This info is worth dwelling on for a moment. As Bitcoin grabs the headlines, more and more people are buying Bitcoin – even while at the same time there is de facto less and less new Bitcoin being injected into the blockchain. What is rare is expensive, so we can expect the Bitcoin price surge to strengthen in the coming years. Especially since this “monetary policy” is set in stone. It is not possible to change the maximum number of Bitcoin in circulation a posteriori.

The price of Bitcoin is still far from reaching its peak

However, another phenomenon plays in favor of the rise in prices. The biggest holders of Bitcoin tend to be HODLer’s, that is to say they do not sell, and keep their jackpot while waiting for the price to rise further. A study cited by Bitcoin Magazine claims that 78% of Bitcoin is held by entities that do not trade cryptocurrency, and instead just keep it in accounts. This makes the units of the asset even rarer, and increases their value.

The HODL meme is also claimed by many Bitcoin investors. When we know that at the beginning of the blockchain it took about 10,000 Bitcoin to buy a pizza, it is enough to say that the HODL strategy which consists of keeping your bitcoin in a wallet without using them, is rather a winning strategy . Especially since the miners, realizing that the potential of Bitcoin prices is still far from being reached, are also getting started.

Also Read – Updated Bitcoin: 3 Changes Explained Simply

For example, the Canadian miner Hut 8 has decided since 2021 to store most of the bitcoin that continues to be mined. This means further reduction in trade, and therefore prices firmly anchored in a strongly upward long-term trend …

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