What Happens When ALL 21 Million Bitcoin Are Mined?

00:03:52
https://www.youtube.com/watch?v=SGnKaWT1lA8

Résumé

TLDRThe video explores the future of Bitcoin mining as the maximum supply of 21 million Bitcoins approaches. It explains the mining process, the significance of halving events that reduce block rewards, and the potential challenges miners may face when rewards drop to zero. The video discusses alternative income sources for miners, such as transaction fees and demand response programs, and highlights the importance of Bitcoin holders in maintaining network security. The viability of relying solely on transaction fees is questioned, especially in light of recent developments like Bitcoin ordinals that have increased fees.

A retenir

  • 💰 Bitcoin has a maximum supply of 21 million.
  • 🔍 Mining involves solving cryptographic puzzles to earn rewards.
  • ⏳ Halving events reduce block rewards over time.
  • ⚖️ Miners may rely on transaction fees when rewards end.
  • ⚡ Demand response programs can provide additional income for miners.
  • 🌱 Renewable energy access may help some miners continue operations.
  • 📈 Bitcoin holders may invest in mining to secure the network.
  • 📊 Recent developments like ordinals have increased transaction fees.
  • 🤔 The future of mining on fees alone is uncertain.
  • 🌍 Major investment funds may adopt Bitcoin, influencing mining dynamics.

Chronologie

  • 00:00:00 - 00:03:52

    The video discusses Bitcoin's maximum supply of 21 million and the implications of reaching this limit. It explains Bitcoin mining, where miners solve cryptographic puzzles to earn block rewards, which currently stand at 6.25 Bitcoins per block, with the next halving in April 2024 reducing this to 3.125 Bitcoins. As the block reward approaches zero, the video raises concerns about how miners will be incentivized to continue validating transactions and securing the network. It suggests that transaction fees could become a primary income source for miners, although their viability as a sole incentive is questioned. Recent developments, such as Bitcoin ordinals, have increased transaction fees, benefiting miners, but sustainability is uncertain. The video also explores alternative income sources for miners, including participation in demand response programs and the potential for miners with access to cheap electricity to remain profitable. Additionally, the self-interest of Bitcoin holders and institutional investments could motivate the maintenance of the network. The video concludes by questioning whether the Bitcoin network can rely solely on fees in the future.

Carte mentale

Vidéo Q&R

  • What is the maximum supply of Bitcoin?

    The maximum supply of Bitcoin is 21 million.

  • How does Bitcoin mining work?

    Bitcoin mining involves users solving cryptographic puzzles to add blocks of transactions to the blockchain and earn block rewards.

  • What happens during a Bitcoin halving?

    During a halving, the block reward for miners is cut in half, reducing the number of new Bitcoins created.

  • What will happen when all Bitcoins are mined?

    When all Bitcoins are mined, miners will rely on transaction fees and other income sources to continue operating.

  • How do transaction fees affect miners?

    Miners receive transaction fees from transactions included in blocks, which may become a significant income source as block rewards decrease.

  • What are demand response programs?

    Demand response programs pay large electricity users, like Bitcoin miners, to pause operations to balance the electrical grid.

  • Can miners survive on fees alone?

    There are concerns about whether transaction fees alone will be sufficient to incentivize miners after block rewards end.

  • What role do Bitcoin holders play in network security?

    Bitcoin holders may invest in mining operations to ensure the network remains secure.

  • What are Bitcoin ordinals?

    Bitcoin ordinals are a recent development that has led to increased transaction fees.

  • Will investment funds adopt Bitcoin?

    It's possible that major investment funds or countries may adopt Bitcoin, which could influence mining operations.

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  • 00:00:00
    one of the most proudly touted features
  • 00:00:02
    of Bitcoin is its maximum supply of 21
  • 00:00:05
    million the reasoning goes that this
  • 00:00:08
    property makes it similar to limited
  • 00:00:10
    resources such as gold but what happens
  • 00:00:12
    when all 21 million Bitcoin are mined
  • 00:00:16
    first let's do a quick recap of how
  • 00:00:19
    Bitcoin mining works new Bitcoins enter
  • 00:00:23
    circulation via a process known as
  • 00:00:25
    mining this involves users operating
  • 00:00:28
    powerful computers to solve
  • 00:00:30
    cryptographic puzzles in order to add
  • 00:00:32
    blocks of transactions onto the
  • 00:00:34
    blockchain in return they earn block
  • 00:00:36
    rewards for their efforts when Bitcoin
  • 00:00:39
    was just created each block added would
  • 00:00:41
    earn miners 50 Bitcoin after every 210
  • 00:00:46
    000 blocks or roughly every four years a
  • 00:00:49
    Bitcoin having occurs which slashes
  • 00:00:51
    rewards by half so far there have been
  • 00:00:54
    three havings so each block added now
  • 00:00:57
    earns miners 6.25 Bitcoins the next
  • 00:01:00
    having is set for some time in April
  • 00:01:03
    2024 where the block reward will drop
  • 00:01:05
    further to 3.125 Bitcoins you can
  • 00:01:09
    probably see where this goes eventually
  • 00:01:11
    the block reward will drop to zero as
  • 00:01:14
    the 21 million Bitcoin limit is aged
  • 00:01:17
    then what's left to incentivize miners
  • 00:01:19
    to stay unlike gold which could still
  • 00:01:22
    continue to be traded without miners
  • 00:01:24
    Bitcoin miners are essential as they are
  • 00:01:27
    the ones who validate transactions and
  • 00:01:29
    secure the network this is where fees
  • 00:01:32
    come in aside from just the block reward
  • 00:01:35
    miners also receive all the fees from
  • 00:01:37
    transactions included in a block paid by
  • 00:01:40
    the sender the idea is that when block
  • 00:01:43
    rewards eventually run out ideally
  • 00:01:46
    adoption of Bitcoin is widespread enough
  • 00:01:48
    or its price is high enough that fees
  • 00:01:51
    become a big enough reward for minors to
  • 00:01:53
    continue to mine blocks however some
  • 00:01:56
    have questioned the viability for fees
  • 00:01:58
    alone to act as a sufficient incentive
  • 00:02:01
    for minors to stay since aside from
  • 00:02:03
    spikes during bull markets fees have
  • 00:02:06
    only made up of small percentage of
  • 00:02:08
    total minor Revenue though recent
  • 00:02:10
    developments with Bitcoin ordinals has
  • 00:02:12
    led to skyrocketing fees in the midst of
  • 00:02:15
    a bear Market this is definitely a boon
  • 00:02:17
    for miners but it remains to be seen if
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    this will be sustained into the
  • 00:02:22
    indefinite future another potential
  • 00:02:24
    income Source could be via participation
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    in demand response programs these
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    incentive programs involve large users
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    of electricity such as Bitcoin miners
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    getting paid for voluntarily pausing
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    operations in order to balance out load
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    on the electrical grid in Texas where
  • 00:02:43
    wind and solar energy is on the rise
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    miners have earned up to 10 percent of
  • 00:02:47
    their revenue via these programs which
  • 00:02:50
    will likely become more common as
  • 00:02:52
    renewable energy capacity expands
  • 00:02:54
    speaking of Renewables there will also
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    likely be minors with access to cheap or
  • 00:03:00
    free electricity that can afford to keep
  • 00:03:02
    mining even with decreased revenues last
  • 00:03:05
    but not least there is also the
  • 00:03:06
    self-interest of Bitcoin holders that we
  • 00:03:09
    can count on to keep the network
  • 00:03:10
    functioning we may eventually have major
  • 00:03:13
    investment funds hold Bitcoin in their
  • 00:03:15
    portfolio or even countries which adopt
  • 00:03:18
    it as a reserve currency if and when
  • 00:03:20
    that happens there will then be powerful
  • 00:03:23
    and economically invested parties which
  • 00:03:25
    will be motivated to keep the Bitcoin
  • 00:03:27
    Network secure by setting up mining
  • 00:03:29
    operations if needed but what do you
  • 00:03:32
    think will the Bitcoin Network run fine
  • 00:03:34
    on fees alone especially with the rise
  • 00:03:36
    of ordinals if you want to learn more
  • 00:03:38
    about nfts and tokens on bitcoin check
  • 00:03:41
    out our video on them right here
  • 00:03:43
    foreign
Tags
  • Bitcoin
  • mining
  • block rewards
  • halving
  • transaction fees
  • demand response
  • ordinals
  • network security
  • cryptocurrency
  • renewable energy