$BTC Bitcoin continues to be the center point of the crypto world and for good reason. It's now currently the ONLY digital cryptocurrency that is traded on traditional finance channels like 401ks thanks to the recently approved ETF's.

But with only 21 Million ever to be made of which over 19 Million has already been mined, roughly 5 million lost forever due to any number of reasons and companies like MicroStrategy now owning over 200,000 of them how serious are you going to get about owning some bitcoin yourself and how much of it?

The Inflation

Every about 4 years Bitcoin goes through what is known as the halving. It's when bitcoin mining is reduced in half. Roughly 900 new bitcoin are minted per day and in about 30 days from today that will drop to 450 new bitcoin minted per day.

That's still a sizeable chunk when you think about it. Currently today with current values that means 56.7 million dollars is miner per day (and that's not counting the fees which we will go over a little later) The big change I personally think will happen is not this halving but the next at just 1.5625 BTC per block in which just a little over 200 BTC will be minted per day.

What this also shows us is that inflation in theory wouldn't ever really stop it would just continue to halve and halve again. It's not until 20 years from now if we look at the per block rewards and then multiply that number by around 144 blocks per day.
Current 6.25
Soon 3.125 - 450 per day
4 years 1.5625 - 225 per day
8 years 0.78125 - 112.5 per day
12 years 0.390625 - 56.25 per day
16 years 0.1953125 - 28.125 per day
20 years 0.09765625 - 13.671875 per day

Yep 20 years from now only 13.67 bitcoin will be mined per day

But also note that the next 8 years is really where we see drastic decreases in the newly printed supply which could also mean the rapid change and feeling of those reduced supplies most likely will only last a few more years. When you start getting into 56 per day the impact becomes far less compared to losing 225 bitcoin a day.

But there's the crazy thing. Every time you transact and put something into a block you pay a fee. For the most part bitcoin is often lower then the likes of Ethereum as Bitcoin is almost only used for payments which Ethereum runs Dapps.

Now the next number always jumps around but roughly $7 per transaction is what the cost is to interact with the chain at the moment. This can go up or down depending on demand and size on the transaction. Each block holds roughly 1,000-2,500 transactions PER BLOCK. That means 1,000x$7 $7,000 - 2,500x$7 $17,500 per block over 144 times you can start to see the value from mining is far far more then just being able to mine a block for the raw inflation.

This is how bitcoin mining will still be in high demand in the future as those earning fees for processing the blocks and securing the network will continue to be paid out well.

The Power

To me this is exactly why we will see these large bitcoin farms and even small time miners to start powering up more and more renewable energy sources in order to continue to profit in more ways than one. When transacting bitcoin becomes too expensive some miner might volunteer to shut off their mining or at least reduce it while selling the extra power off on to the grid in order to still generate revenue.

The Next Stages

At some point and I think we are already starting to see it on some level major companies and even countries are going to start to stock pile bitcoin themselves as a way to store value and bring value into their country.

So how many bitcoin will you hold in the next 4 years? Let me know in the comments and your plan to get there.

Posted Using InLeo Alpha