21 million BTC has been pegged as the total fixed supply of the Bitcoin network. As of now, 18.5 million BTC is already in circulation.
This means that less than 2.5 million BTC, nearly 11.9%, is left of the total Bitcoin supply to be generated in the coming years.
As per ChartBTC, half of the remaining 2.5 million BTC will be mined in 2024 through the process known as halving. Furthermore, the last bitcoin is expected to be mined in 2140. From then on, no new bitcoins will be mined.
— ChartsBTC (@ChartsBtc) September 27, 2020
Bitcoin halving, also referred to as ‘halvening,’ occurs every 4 years. This is when a 50% reduction in the compensation to miners, the nodes that sustain the Bitcoin network, is conducted.
Initially, 50 BTC per block is given to miners as rewards. But during the first-ever Bitcoin halving event on November 29, 2012, it was cut into half (25 BTC). This year, the third halving took place in May, letting the block reward get further reduced to 6.25 BTC.
Bitcoin was designed as a deflationary currency just like the gold supply. As BTC continues to grow scarce in supply, many investors plan to buy BTC and increase their stakes in the crypto asset regardless of its price drop.
The growing list of investors include MicroStrategy CEO Michael Saylor, who purchased 21,452 BTC recently and veteran investor Paul Tudor Jones who continues to be a strong BTC advocate. Jones described Bitcoin as the “fastest horse” with the best odds, performance-wise.
In addition, crypto asset fund Grayscale Investments boosts its Bitcoin position by acquiring additional 17,000 BTC to its holdings. Moreover, the firm revealed that institutional demand for bitcoin increased rapidly in 2020, as an inflow of $1.4 billion in capital was recorded during the first half of 2020.
Despite dropping its price to $10.8k, at the time of writing, many investors continue to show interest in Bitcoin.