What happens after the 21 millionth Bitcoin?
What exactly happens after the 21 millionth Bitcoin? Why 21 million? In this short video, shot on Canal Drive in Pompano Beach, I discuss the goals of Bitcoin ...
What's up, party people? Chris DeRose here, Community Director of the Counterparty Foundation, and today I wanted to answer a question that a number of you have asked me, which is, 'What happens after 21 millionth coin?' I believe that it'll define, that's just in one way or another I had a question to that effect and let's talk about that for a little bit. As you may or may not know, Bitcoins have a maximum number of Bitcoins that will be produced. The final Bitcoin will be mined in the year roughly 2106, I believe, and at that time the supply of Bitcoins will have been having, as a term of what it's been rewarding for the miners, and it won't be an entire Bitcoin that's mined, it will be a small fraction, I don't know what the number is. It won't be exactly the 21 millionth coin, it's a little bit shy of that, it's like 20,000,999, something like that. But it's close to it, and then of course, well why that number. The easy answer is that it is very close to the amount of Satoshis that can be tracked within a 64-bit integer, a unsigned integer, I believe, and that's the reason for the supply being the case.
So let's get to what happens at that time. Well, presumably in the year 2106, Bitcoin will be going very strong. It'll be a big part of the global monetary system and there will be a lot of people that are speculating on the value and requiring to perform functions like we see in Counterparty. So there'll be a lot of value to the Bitcoin at that time. And at that time, as a relative percentage of the receipt that a minor is getting, the tip amounts will have exceeded the minted coin. Currently the way it works is roughly, I think, 30 U.
S. dollars roughly, at the time of recording, per block is in the form of tips and then there's 25 BTC awarded in tips per block currently. But that ratio will start to change until we get towards the 21 millionth coin, at which point, the tips will exceed the amount of reward from the mining process. So by the time we hit that small amount there and 21 millionth coin, tips will be a big part of the mining incentive and miners will be working for tips. So that's what we expect to happen, at that time, and thereafter it'll be an entirely tip-based mechanism. Miners will be incentivized to mine because they will be receiving rewards from the people who are using the network.
That's it. That's the easy answer. It'll be an exotic time for us indeed and it will be a very different time then what we are currently seeing for all kinds of reasons, and certainly we hope Bitcoin being at the top of that list. Thanks for watching. Again, I'm Chris DeRose. You can email me, Chris@ChrisDeRose.
com and you can tweet me on Twitter at DeRoseTech and I look forward to hearing from you guys. Subscribe to the channel and ask me questions. I love to answer these.