What happens to Bitcoin After The 21 Million Supply Mining is Exhausted
There has been a lot of hype towards the supply of bitcoin and why it’s better than the dollar and why it’s the solution for inflation. But I have always had these disturbing thoughts to what will be the fate of bitcoin after there is no more coins to mine.
There are 21 million supply of bitcoin, which I guess that in less than 5 - 10 years will be exhausted and there will be no more bitcoin to mine. The whole world has to depend on the already mined bitcoin. Bitcoin is a decentralized currency, no one controls it because of its technology, that means if people were to lose their wallet keys and can’t access their bitcoin, do they lose their coin forever? Even if they do lose their coin, this is going to reduce bitcoin’s circulation. What of people that died without exposing their wallet Keys to anyone, what is the future of their coins and the circulation of bitcoin.
This is the disadvantage of having a currency with a fixed supply. This can also make bitcoin deflationary since its a fixed supplied and no new coins are available.
Deflation is the opposite of inflation when currency gains value, that same amount of currency can buy and allow more goods and services.
Personally I feel that the hype of bitcoin’s immunity to inflation is just based on monetary inflation because of the fixed supply.
Let’s look at this from this scenario, bitcoin mining has stopped, because there is no more bitcoin to mine, the world has adapted to using bitcoin, and the currency is as important as dollar now. Imagine you are getting paid in bitcoin, and let’s say your salary is 0.05 BTC monthly. Regardless of the value, at the end of the month, you get paid 0.05 BTC. Mind you there are people also working in that working environment and getting paid in BTC. Some get paid 0.1 BTC, some get paid 0.5 BTC. If everyone decides they wanted a salary raise, not in monetary term this time around but in bitcoin quantity, what do you think will happen?
This means that your boss will start charging their clients for more bitcoin quantities, surely the prices of bitcoin will keep going high because the demand keeps increasing but the supply is extremely low. I mean 21 million quantities of bitcoin compared to 7.8 billion people. That means 371 people are fighting to have 1 bitcoin. And remember there are people saving and HODLING and not selling. So if everyone wants more bitcoin increase as wages then where is the supply for that.
Just while bitcoin has a lot of advantages in being the solution to inflation, I can’t help but think, is there something like too much deflation that will be detrimental?
But then another flashed and its, that’s why there are other altcoins. These altcoins have a lot of supply and it will be used as alternatives. If your salary in bitcoin was 0.05 BTC and you want a salary bitcoin increase to 0.07 BTC, you will have the option of choosing an Altcoin worth 0.07BTC or have your usual 0.05 BTC with an extra Altcoin worth 0.02BTC. Problem solved and the world goes on as usual being a better place for us because we have cryptocurrencies now.
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