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Will Bitcoin mining still be profitable?
Considering past events, profitability prospects depend on the price of Bitcoin at the time of the halving. Halvings decrease miner profitability in the short term, but depending on the price of Bitcoin at that time, that reduction may not occur. Conversely, if there is no significant price increase, mining will only be profitable for large companies that have the necessary equipment and financing to continue operating. Ultimately, the halving acts as a kind of leveler within the mining industry, as some miners stop operating due to decreasing yields, and in turn, the difficulty level decreases, making it easier for new miners to join and start mining.
What will happen when all bitcoins are mined?
When the 21 million bitcoins are mined, which is estimated to occur in 2140, miners will stop receiving bitcoins as a reward for solving complex transactions. However, they will be compensated for their work through transaction fees.
Although a maximum of 21 million bitcoins can be minted, the number of bitcoins in circulation is likely to remain significantly below that figure. Bitcoin holders may lose access to their bitcoins, for example, by losing their private keys or dying without sharing their wallet data. A June 2020 study by the cryptocurrency forensic analysis firm Chainalysis estimated that up to 20% of the bitcoins already issued could be permanently lost.
One of the main features of Bitcoin (BTC) is its limited supply. Its inventor, Satoshi Nakamoto, the anonymous name of the creators of the cryptocurrency, designed it with a cap to limit the supply. This increases its scarcity over time, which tends to boost demand and price.
Since the number of new bitcoins issued per block is halved approximately every four years, the last bitcoin (realistically, the last satoshi) is not expected to be generated until 2140 (it could be earlier). The number of new bitcoins minted per block was 50 when Bitcoin was created and has since decreased to 3.125 in 2024; the next halving to 1.5625 is expected to occur in 2028.
