As of December 2023, miners in the Bitcoin blockchain have mined 19.5 million coins out of a maximum possible quantity of 21 million. If immediately after the launch of Bitcoin, “miners” received 50 BTC for adding one block to the chain, but now the payment is only 6. 25 BTC.

The question arises what miners will do when Bitcoin runs out. It is not clear whether it is worth buying equipment if the number of BTC is close to its maximum. Will the “farms” continue to make a profit after reaching the limit.

Scarcity is one of the most valuable characteristics of BTC as a store of value and settlement. The inventor of this blockchain, the legendary Satoshi Nakamoto, built a deficit into the algorithm for the functioning of the decentralized system. This avoids inflation and gradual depreciation of the asset. This is how the developer laid the foundation for maintaining demand and increasing market value.

At the time of writing, miners had mined 19,582,181 BTC out of a possible 21,000,000 or 93.2%. The number of coins in circulation increases by 6.25 BTC every 12 minutes. This is exactly how long it takes to generate a new block in the chain. This money is taken by the owner of the node, who has received the right to add an element.

Blockchain developers have provided a halving procedure. This term means the reward is halved after joining 210 thousand blocks. It is expected that it will happen again in mid-spring 2024. That is, miners will receive half as much as before.

Most miners are interested in the question of what year the consequences will end. Calculations show that this could happen around 2140. But, despite the limit included in the pendant, the actual limit of 21 million coins will not be reached. This is due to the peculiarities of the operation of arithmetic bit shift operators in computer systems. When performing mathematical operations, they round the result to the nearest whole number.

Another rounding may occur when, during the halving, the reward to miners will be divided by two. But the payment cannot be less than a satoshi (it is equal to 0.00000001 BTC), which is not divided in half. As a result, the remainder will be rounded to the nearest number.

These calculation features will not allow you to reach the established limit. The total number of mined coins will always be some fraction of a percent less than the limit.

The main problem is that when Bitcoin mining ends, blockchain participants will not be able to receive rewards for adding new blocks. No coins will be generated for this. But this does not mean that owners of mining farms will have to sell their ASICs or switch to working with another blockchain. They will be able to make a profit in other ways.

Why miners keep the Bitcoin blockchain running

Decentralized systems cannot work without miners, who place copies of the blockchain on their computers and add new blocks to them. These users support Bitcoin for several reasons.

Receiving a profit

The most common and obvious option. Owners of wallets who participate in mining receive a reward for generating new links in the chain. The payment is distributed every 12 minutes according to a special algorithm. Although the payment is currently only 6.25 BTC, mining brings in a good income.

The second source of profit is the commission for transferring coins within the blockchain.

Support for decentralized systems

Blockchain-based cryptocurrencies act as an alternative to government-controlled fiat money. Some users take part in mining only because they want to support the operation of monetary instruments that do not have imperative control.

Long-term investments

Some miners mine BTC coins to use them as a means of accumulating capital. Bitcoin in this case replaces gold or other valuables that are constantly growing in price.

There is no need to fear that the coin will depreciate. The hashrate graph shows that user interest in Bitcoin is constantly growing, and mining does not depend on the decisions of government agencies. For example, the graph below clearly shows the failure in 2021, when the Chinese authorities banned the “mining” of cryptocurrencies on their territory. But after that the curve went up again, which indicates that miners have adapted to the changed.

A large hashrate confirms the reliability of the asset and its financial potential. This attracts investors and increases the capitalization of the bitcoin.

How will miners earn money when Bitcoin mining ends?

Currently, blockchain participants receive money for adding a block. However, as you approach the limit, the payouts will decrease until they become too small. In this case, mining will become unprofitable.

But miners will continue to earn thanks to the commission. In the chart below, the volumes of commissions, which will gradually become an alternative source of income, are clearly visible in the form of yellow peaks. This money is paid for conducting transactions within the network.

Despite the fact that now commissions make up only 5% of total income, over time, according to experts, this figure will grow and compensate for the loss of profit from mining. In addition, second-level solutions will appear (Lightning Network and others), with the help of which it will be possible to transfer coins from user to user faster, easier and cheaper.

Is it possible to cancel the Bitcoin limit of 21 million coins?

When creating the blockchain, the developers did not explicitly write down the restriction in the program code. But it is inherent in the algorithm used. The protocol of the decentralized system provides for a permanent halving of the reward.

Could Bitcoin end because of this? Yes, periodic halving of payments after joining 210 thousand blocks will not allow you to mine more than 21 million BTC. When the number of coins in circulation approaches 99.99%, the payouts will be so small that they can be neglected.

What happens to Bitcoin after mining is completed?

The limit of coins in circulation is useful for both miners and ordinary owners of this cryptocurrency. When Bitcoin mining ends, the money in circulation will become increasingly scarce every year. The scarcity of the resource equates BTC to gold, diamonds or other extremely rare minerals.

What is the point of maintaining the blockchain if the reward for mining is reduced to zero:

Payment of transaction costs

The people and organizations that will store the blockchain and process transactions will profit from the fees. It is expected that the payment for completing the operation will be high enough to cover the costs of maintaining mining farms and generate profit for miners.

Store of value

The Bitcoin limit allows us to consider it as a way of storing money and a method of diversifying an investment portfolio. The lack of resource inflow will lead to an increase in its value. This, in turn, stimulates the purchase of an asset on the exchange.

In addition, BTC, as an alternative to conventional financial instruments, may be in demand in the form of protection from the actions of governments, large financial companies, and international organizations.