Jul 01, · The current value of all the bitcoin BTCUSD, % in the world is worth about $42 billion, at the latest check. That is undoubtedly more money than most Americans will ever see in Author: Sue Chang. Market capitalization (often shortened to market cap) is the approximate total value of a cryptocurrency, typically shown in US dollars. The market cap of a cryptocurrency is calculated by multiplying the number of coins or tokens in existence by its current price. Total market size of Bitcoin has been praised and criticized. Critics noted its role IN ill-gotten transactions, the large amount of electricity misused by miners, price volatility, and thefts from exchanges. more or less economists, including several philanthropist laureates, have defined it district a speculative emit.
Total size of bitcoin marketHow big is bitcoin, really? This chart puts it all in perspective - MarketWatch
While there can only ever be a maximum of 21 million bitcoin, because people have lost their private keys or have died without leaving their private key instructions to anybody, the actual amount of available bitcoin in circulation could actually be millions less.
The first With only three million more coins to go, it might appear like we are in the final stages of bitcoin mining. This is true but in a limited sense.
While it is true that the large majority of bitcoin has already been mined, the timeline is more complicated than that. The bitcoin mining process rewards miners with a chunk of bitcoin upon successful verification of a block. This process adapts over time. When bitcoin first launched, the reward was 50 bitcoin. In , it halved to 25 bitcoin. In , it halved again to On May 11, , the reward halved again to 6. This effectively lowers Bitcoin's inflation rate in half every four years.
The reward will continue to halve every four years until the final bitcoin has been mined. In actuality, the final bitcoin is unlikely to be mined until around the year However, it's possible the bitcoin network protocol will be changed between now and then. The bitcoin mining process provides bitcoin rewards to miners, but the reward size is decreased periodically to control the circulation of new tokens. It may seem that the group of individuals most directly affected by the limit of the bitcoin supply will be the bitcoin miners themselves.
Some detractors of the protocol claim that miners will be forced away from the block rewards they receive for their work once the bitcoin supply has reached 21 million in circulation. But even when the last bitcoin has been produced, miners will likely continue to actively and competitively participate and validate new transactions.
The reason is that every bitcoin transaction has a transaction fee attached to it. These fees, while today representing a few hundred dollars per block, could potentially rise to many thousands of dollars per block, especially as the number of transactions on the blockchain grows and as the price of a bitcoin rises.
Ultimately, it will function like a closed economy , where transaction fees are assessed much like taxes. It's worth noting that it is projected to take more than years before the bitcoin network mines its very last token. In actuality, as the year approaches, miners will likely spend years receiving rewards that are actually just tiny portions of the final bitcoin to be mined. The dramatic decrease in reward size may mean that the mining process will shift entirely well before the deadline.
It's also important to keep in mind that the bitcoin network itself is likely to change significantly between now and then. Considering how much has happened to bitcoin in just a decade, new protocols, new methods of recording and processing transactions, and any number of other factors may impact the mining process. Bitcoin Magazine.
Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. Bitcoin Basics. Bitcoin Mining. How to Store Bitcoin. Bitcoin Exchanges. Bitcoin Advantages and Disadvantages. Bitcoin vs. We will calculate the total value of Bitcoin first because that is the easy part. To get a sense of how much of the world's money is in bitcoins, we must determine the total amount of money.
As it turns out, this is not the easiest question to answer. Such a calculation might take into account dozens of categories of wealth, including bank notes, precious metals, money market accounts, and debt. As of March , this number is surely outdated. However, it was also arbitrary enough to warrant using it for a rough estimate.
That leaves Bitcoin at about 0. The Money Project's estimate gives a good general idea of the size of the money supply relative to Bitcoin. However, it is much less accurate than the other estimates used in this article. How does Bitcoin compare to gold? After all, some people still consider gold to be the real money.
It is certainly the gold standard to which other currencies must be compared. We begin with the World Gold Council's figures. They estimated that about , tonnes of gold had been mined throughout history as of the end of There are 32, In total, the value of all bitcoin was about 1. Bitcoin is the largest and best-known cryptocurrency in the global economy.
However, it is far from the only one. The Money Project. World Gold Council. London Bullion Market Association. Company Profiles. Your Money. Personal Finance. Your Practice. Popular Courses.
Part Of. Bitcoin Basics. Bitcoin Mining. How to Store Bitcoin. Bitcoin Exchanges. Bitcoin Advantages and Disadvantages.