Scarcity and Bitcoin Demand

Scarcity and Bitcoin Demand

Scarcity creates demand, and many believe that as the amount of bitcoin yet to be mined gradually decreases and market concentration focuses on Bitcoin, its price will continue to rise.

Currently, there are 18.5 million bitcoins in circulation, leaving less than 2.5 million (11.9% of the total supply limit of 21 million) left to be mined, with about half to be mined in the next four years. This data was recently shared by ChartBTC on Twitter.

Bitcoin's network has undergone three block reward halvings since its inception in 2009, the most recent one occurring in May 2020, which reduced the bitcoin supply issuance rate to approximately 1.7% annually. This means that the speed of mining remaining bitcoins will slow with each halving event, and the final batch of bitcoins is expected to be mined by 2140.

Bitcoin is designed to be scarce like gold and is also difficult to obtain through Proof-of-Work. However, unlike gold, Bitcoin can be transferred through digital channels. Its supply is limited by design, with new bitcoins being created as a reward for mining each new block, but the reward amount is halved over time.

Obtaining 6.25 Bitcoins

To obtain 6.25 bitcoins, you can buy them from cryptocurrency exchanges, mine them through a mining rig, or receive them as payment for goods or services.

Buying Bitcoin

Buying bitcoin from a cryptocurrency exchange is one of the most common ways to obtain bitcoin. There are many exchanges available, including Coinbase, Kraken, and Binance. You can use fiat currency, such as USD or EUR, to purchase bitcoin.

Buying Bitcoin on Coinbase

Mining Bitcoin

Mining bitcoin involves using a specialized computer system to solve complex mathematical problems. When a problem is solved, a new bitcoin is rewarded to the miner. However, this process requires a significant investment in hardware and electricity costs.

Bitcoin Mining Rig

Receiving Bitcoin

Another way to obtain bitcoin is to receive it as payment for goods or services. Many businesses accept bitcoin as payment, and some individuals may also be willing to pay in bitcoin.

Bitcoin Payment QR Code

No matter how you obtain bitcoin, always remember to keep your private keys safe and secure to protect your investment.