By the end of the week, the net volume of bitcoin tokens available for mining will shrink to 3 million. That will be after the 18 millionth token has entered the circulation in approximately three days from now. It will mark an important milestone for bitcoin before the next halving.
We are just over a decade since the concept of bitcoin was actualized in 2009. And we have exhausted an incredible 85.7% of the total supply. It might look like we are depleting the supply, but you will be surprised that it will take 120 more years before the last unit of the 21 million of crypto is mined.
The Future of Mining
In anticipation of crossing the new mileage, cryptocurrency enthusiasts wonder what the future holds for the flagship cryptocurrency. Just how hard can mining get, and how low can the rewards for miners reach? It is common for mining to get complicated and rewards to decrease after halving. Will miners remain committed to the course?
Currently, there is no definite answer to that. But at the same time, there is no doubt that the network hash rate is consistently increasing while mining has become increasingly competitive.
Increasing Hash Rate
The hash rate figure hit an all-time high of 108 million TH/s on September 26. The number still remains north of 100 million TH/s while barring temporary dips now and then. Compared to the figure of 42 million TH/s at the beginning of the year, that’s about 150%.
A higher hash rate is an indicator of rising processing power and increasing activity on the network. The root cause of the spike is difficult to ascertain, although a theory exists to account for the rising hash rate. You see the emergence of new generation mining ring is partially to blame for the spike in network activity.
New Mining Rigs
It’s about to get worse for the miners. Mining rigs with more power and sophistication are being rolled out in anticipation of the next halving event.
The next halving event is estimated to be at around May 2020, and mining rewards will be cut in half after then. From the current rate of 12.5 BTC per block, the same will be rewarded at 6.25 BTC. It also means that the mining activity itself will be more competitive as compared to the past. Miners with older and weaker rigs will have to call it quits. The government also threatens to regulate mining.
The skeptics of the proof of work mechanism are arguing that a breaking point will be reached, and miners will quit before the last block before halving. The concerns, however, are a little exaggerated. And it’s not the first time that the speculations have come up. Similar interests were rife in 2016. The concerns, however, proved baseless as the network grew stronger post halving.