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Bitcoin mining is getting more controversial day by day as the energy consumption led by bitcoin mining is huge. Regardless of the fact, bitcoin mining is an exceedingly robust entity and aspect of the bitcoin network. Bitcoin and bitcoin mining has been the headlines for a very long time as several renowned parties have passed statements regarding bitcoin mining’s environmental toll and bitcoins’ volatile nature.
You might be familiar with the fact that bitcoin is subjected to a limited supply of units, and no one can exceed the supply of bitcoin. You can also visit the Bitcoin Champion platform for getting profitable information regarding bitcoin. Satoshi Nakamoto issued merely 21 million bitcoin units as he was not familiar with the fact that bitcoin will be equipped with an extent of store value in the future.
If the bitcoin number is limited, then what would the future of bitcoin mining be as no mine will invest resources in bitcoin mining when there is no incentive and block reward majorly consist of bitcoin, so let’s check out the future image of bitcoin mining.
Why Is Bitcoin Subjected To A Limited Supply?
Bitcoin was the first-ever digitalized coinage, having decentralized features alongside the limited supply. Bitcoin inventor issued 21 million bitcoin units at the value of zero, but the value of bitcoin kept inclining gradually, and it exploded.
Bitcoin’s limited supply might sound like a drawback to you, but actually, it is exceedingly profitable for those who have invested resources in bitcoin. Bitcoin’s limited supply will lead to the scarcity of bitcoin, and scarcity will further lead to increasing the value of bitcoin to an extent. All the more, as bitcoin is limited, there are nominal chances of inflation like fiat currencies.
What Will Happen Once Bitcoin Supply Prohibited?
The established bitcoin ecosystem is subjected to a limited supply, and there can only be 21 million bitcoin units, but what will happen once the supply of bitcoin is utterly prohibited. As per the robust sources, the last ever bitcoin will be mined in 2140, and at that instance, mining a single bitcoin unit will be exceedingly complicated as the block reward of bitcoin mining will be exceedingly less due to the block reward halving.
You might be wondering what will keep bitcoin miners continuing as there will be no block reward in the form of bitcoin. The block reward of mining includes bitcoin and transaction cost or transaction fees levied by the trustable exchange while processing that explicit transaction. Once the limit of bitcoin is reached, the block reward of bitcoin mining will cover only the transaction cost.
The transaction might sound like a small reward for investing gigantic resources. However, the frequency of transaction cost as the block reward of bitcoin mining will be exceeding in contrast to the hefty block reward acquired by the miners prior to the limited reach of bitcoin. Summing up, bitcoin mining will still be continued even if the limit of bitcoin is reached as the bitcoin algorithm will render the transaction cost as the block reward.
Environmental Aspects of Bitcoin Mining In Future
Environmental aspects of bitcoin mining is one of the prominent reasons why bitcoin has acquired an extent of the limelight in recent times. Elon musk and a joint committee of china have correspondingly addressed the burning of fossils fuelled by bitcoin mining.
The energy consumed by bitcoin mining emits an extent of greenhouse gas which correspondingly leads to a carbon footprint. However, as per the recent news, bitcoin mining is not that bad for the environment.
According to a report of the bitcoin mining council, more than 56% of the bitcoin mining plants are now complexed on a sustainable form of energy. All the more, Elon musk correspondingly stated that the future of bitcoin mining is very clean, and tesla motors are likely to begin bitcoin payments very soon.
Moreover, the cryptocurrency crash has correspondingly declined the centric domination of china in the mining industry as bitcoin mining is now banned in China. Considering the existence of bitcoin mining plants on sustainable energy, the future of bitcoin mining is exceedingly optimistic.
This crisp, clear image of bitcoin mining in the future.
