How Many Bitcoins Are There and Why It Matters to Investors

Imagine a world where your money is not subject to the whims of a central bank. Instead, this money is limited, immune to inflation, and entirely predictable. You can easily track its movements on a public ledger, and no one can alter its code or create more units of it without a consensus from the network. This is the appeal of Bitcoin, and the more you understand it, the more you can grasp its actual value and potential as an investment. One of the first and most important things to learn about Bitcoin is how many Bitcoins exist and what is Bitcoin halving? This article will explore this topic in detail, explaining the significance of Bitcoin's fixed supply in terms of scarcity, value, and long-term investment potential.

Bitcoin Magazine Pro's Bitocin analysis tools can help you better understand Bitcoin's supply and its impact on price to understand this unique digital asset and its market cycles.

How Many Bitcoins are There?

how many bitcoins - How Many Bitcoins Are There

Bitcoin’s maximum supply cap is fixed at 21 million. This limit is hardcoded into Bitcoin’s protocol and cannot be changed. The total supply is distributed over time through mining, with a diminishing block reward over the years. The final Bitcoin will likely be mined around the year 2140.

Bitcoin’s supply is capped at 21 million. This number is hardcoded into the Bitcoin protocol, meaning it cannot be changed. As of April 2024, the number of Bitcoins in circulation is 19,722,500. This means that 93.9% of the total Bitcoin supply has been mined. The final Bitcoin is expected to be mined around 2140.

How Many Total Bitcoins Are There?

To understand the circulating supply of Bitcoin, it is essential to go right back to the beginning. When Bitcoin was launched in 2009, it was created with a fixed supply mechanism. On average, new BTC tokens enter circulation every 10 minutes. As explained later, the block time can vary depending on network conditions. But it has averaged to 10-minute cycles over time.

The Significance of Bitcoin Halving

So why does this matter? Every time a new block of transactions is confirmed, the circulating supply increases as more BTC is minted to reward miners. Currently, this amounts to 3.125 new Bitcoins for every block. Previously, this stood at 6.25 BTC. And before that, 12.5 BTC, 25 BTC, and 50 BTC, respectively. The supply rate changes due to the ‘Bitcoin halving‘.

Predictability and Certainty Through Halving

Bitcoin halving happens every 210,000 blocks or about four years. This reduces the supply of new tokens over time. More specifically, the number of new BTC tokens entering the supply every 10 minutes is reduced by 50%. The previous Bitcoin halving took place on block number 840,000 in April 2024. Bitcoin halving provides the BTC ecosystem with clarity, certainty, and predictability since Bitcoin cannot suddenly increase its supply.

Checking the Current Bitcoin Supply

Once the supply hits 100%, 21 million BTC tokens will be in circulation. Based on halving cycles of 210,000 blocks, Bitcoin is expected to reach its maximum supply in 2140. Still asking the question: How many Bitcoins are there in total? One of the easiest ways to find this information is on CoinMarketCap. The data aggregation platform updates in real-time, allowing users to gain insights into how many people use Bitcoin and how many Bitcoins will be in 2024.

Key Calculations: How Many Bitcoins Are There Left to Mine?

While third-party platforms like CoinMarketCap make it simple to keep tabs on Bitcoin’s supply, seasoned investors prefer to do their calculations. This removes the need to trust the information being provided by another source. To reach a conclusive calculation, it’s essential to understand how the supply of Bitcoin is determined. Let’s start with the Bitcoin mining system.

Bitcoin Mining Keeps the Network Decentralized

One of the many unique features of Bitcoin is decentralization. This means that, unlike traditional currencies, a central bank or government does not control the Bitcoin network. Bitcoin transactions don’t require third-party authorization.

This also contrasts traditional currencies, which must go through banks and other intermediaries when transferred. Instead, Bitcoin transactions are verified by blockchain miners.

To ensure that Bitcoin is an inclusive financial system, anyone can help mine transactions. The process requires miners to connect hardware to a device. The device will attempt to solve an equation. The equation is so complex that only a specialist device can solve it. It takes about 10 minutes on average for the equation to be solved.

Bitcoin Mining Devices and Energy Consumption

Mining requires expensive, powerful hardware and consumes a considerable amount of electricity. This is because of the complexity of the equation that needs to be solved. For example, in 2021, the New York Times reported that Bitcoin mining uses more energy than entire countries.

High Energy Consumption and Environmental Concerns

The same article states that the average household would require 9 years of energy supply (or $112,500) to mine a single Bitcoin block. Building on that, the Cointelegraph reported that in the first five months of 2024, Bitcoin mining in the US has consumed 20,822.62 GWh of electric power, costing over $2.6 billion at the current average commercial electricity rate.

To paint a clearer picture, “this amount of energy could charge every electric vehicle in the U.S. 87.52 times or power 1,983,107 households for a year.”

The Competitive Nature of Bitcoin Mining

Although the Bitcoin mining system is inclusive, it is very competitive. This is because the miner successfully verifies the block receives newly minted Bitcoin. This currently amounts to 3.125 BTC for every mined block. Miners receive $211,680 BTC tokens every 10 minutes based on the current Bitcoin price.

This huge incentivization is why Bitcoin miners are prepared to invest so much. As more miners enter the market, the difficulty of each equation increases. Only the most powerful Bitcoin mining rigs and those with access to cheap electricity have a realistic chance of success.

Home Mining and Cloud Mining Options

Although large-scale operations now dominate Bitcoin mining, there are still ways for the average citizen to get involved and mine Bitcoins at home. Cloud mining companies, for example, pool resources from multiple small investors to collectively mine Bitcoin. That said, not only are cloud Bitcoin mining sites highly centralized, but many are scams.

Ensuring Bitcoin Inflation Rates Can’t Be Manipulated

Investors should also understand inflationary controls when asking the question: How many Bitcoins are there? This is a significant concern with traditional currencies. After all, fiat currencies are no longer backed by gold or other valuable assets. Instead, central banks can print as much money as they wish. For example, the US Federal Reserve printed over $3 trillion worth of US dollars in 2020.

This was in response to COVID-19 measures and amounted to almost one-fifth of the total supply. Similarly, in 2020, the Bank of England printed nearly £500 billion throughout the pandemic. The European Central Bank also engaged in ‘money printing’ during the pandemic, amounting to €1.85 trillion.

This trend can be found in most corners of the world. So why does this matter, and how does it relate to the Bitcoin supply? Well, ‘currency printing’ increases the money supply and reduces its value. This is because of the impact of inflation, which increases the cost of living. When too much money enters circulation at any given time, this can have a disastrous effect on the economy.

Bitcoin Halving Every 210,000 Blocks

Just like traditional currencies, Bitcoin experiences inflation. However, as noted above, inflation is fixed and predictable. Inflation arises when new BTC tokens enter circulation. We have established that this happens every time a new block is mined, approximately in 10-minute cycles. Nevertheless, the amount of new Bitcoin entering circulation is reduced by 50% for every 210,000 blocks mined.

This is known as the Bitcoin halving event, occurring approximately every four years.

Originally, the Bitcoin block reward was 50 BTC.
After 210,000 blocks were mined in November 2012, the mining reward was reduced to 25 BTC.
Then, in July 2016, after 420,000 blocks, the reward was reduced to 12.5 BTC.
In May 2020, after 630,000 blocks were mined, the mining reward was reduced to 6.25 BTC.
The most recent Bitcoin halving event occurred in April 2024, on block 840,000. This reduced the mining reward to 3.125 BTC.
The next Bitcoin halving is scheduled on block 1,050,000, expected in 2028. It’ll reduce the mining reward to 1.625 BTC.

Bitcoin halvings will continue every 210,000 blocks until the total supply reaches 21 million — this is expected to happen in 2140. Once the maximum supply is reached, there won’t be any new BTC tokens entering circulation. In other words, Bitcoin will no longer be an inflationary asset.

Halving Event	Date	No. Blocks	New BTC/Block	Total New BTC Tokens
0	January 2009	0	50	0
1	November 2012	210,000	25	10,500,000
2	July 2016	420,000	12.5	5,250,000
3	May 2020	630,000	6.25	2,625,000
4	April 2024	840,000	3.125	1,312,500
5	Approximately 2028	1,050,000	1.5625	656,250
6	Approximately 2032	1,260,000	0.78125	328,125
7	Approximately 2036	1,470,000	0.390625	164,063
8	Approximately 2040	1,680,000	0.1953125	82,031

Key Figures: How Many Total Bitcoins Are There?

So now that we have explained how the underlying network determines supply, let’s summarize the question: How many Bitcoins are there?

How many Bitcoins are in circulation?	19,722,500 BTC
How many Bitcoins are left to mine?	1,277,500 BTC
Percentage of Bitcoins in circulation	93.917%
Percentage of Bitcoin supply left to mine	6.083%
Percentage of Bitcoin dominance	52.12%
Bitcoin trading volume (24-hour)	$27.84 billion

The above table is based on figures at the time of writing. The new supply of Bitcoin will increase approximately every 10 minutes. This will impact the percentage of BTC tokens still left to mine.

How Many BTC Tokens Can There Be at the Same Time?

The number of Bitcoins in circulation will continue to increase after each block is mined. This happens approximately every 10 minutes, with 3.125 BTC entering circulation. This increase will continue until Bitcoin reaches its maximum supply of 21 million tokens. When this happens, the supply of Bitcoin will not increase further.

This means that Bitcoin miners will no longer be rewarded with newly minted tokens. Instead, they will only receive transaction fees paid for the respective block being mined — more on this later. Another point to note is that Bitcoin will become a deflationary currency when it reaches its maximum supply.

What Percentage of the Bitcoin Supply Is Due to Mining?

When the first Bitcoin block was mined on January 3rd, 2009, the circulating supply was just 50 BTC. This was known as the Genesis Block, or Block 0. Thereon, approximately every 10 minutes, new BTC tokens entered circulation. After each new block, miners received a reward. This will continue to be the case until Bitcoin supply reaches 21 million tokens.

The current circulating supply of Bitcoin is 19,722,500 BTC. This figure also refers to the number of Bitcoins that have been mined. As such, 100% of Bitcoin tokens in circulation were initially distributed to miners. The general public can only buy Bitcoin once the newly mined tokens are sold.

How Many Bitcoins Have Been Lost?

bitcoins that are lost - How Many Bitcoins Are There

Determining how many Bitcoins are lost is complicated. Since Bitcoin transactions are pseudonymous, no official record of ownership or lost coins exists. As a result, no one knows exactly how many Bitcoins have been lost over the years. Nevertheless, it’s well known that some Bitcoins have been lost for various reasons.

Lost Private Keys: The Most Common Way Bitcoins Are Lost

Many early Bitcoin adopters may have lost access to their Bitcoins because they lost their private keys or the hardware upon which they were stored. Once a private key is lost, the Bitcoins it controls are irretrievable.

Unrecoverable Wallets

Some may have lost Bitcoins by sending them to wallets they no longer have access to or with known vulnerabilities. These wallets may have been corrupted or damaged beyond repair, resulting in lost Bitcoins.

Forgotten Wallets

Bitcoin wallets were not as user-friendly in the early days, and some individuals may have forgotten about the wallets they created or the Bitcoins they stored in them. Without proper organization or a clear understanding of how these wallets worked, it’s easy to see how someone might lose track of a wallet containing valuable Bitcoins.

Deceased Owners

In some cases, Bitcoin owners have passed away without sharing their private keys or recovery information, resulting in those Bitcoins becoming inaccessible. This unsettling scenario highlights the need for proper planning regarding BTC ownership.

Burnt Coins

Some Bitcoins have been intentionally ‘burnt’ by sending them to addresses with no known private key, making them permanently unspendable. While this is not a common occurrence, it does happen from time to time.

The Impact of Lost Bitcoins

While it’s challenging to quantify the exact number of lost Bitcoins, various estimates suggest that a significant portion of the total supply may never be recovered or used again. These lost coins contribute to the overall scarcity of Bitcoin, as they are effectively removed from circulation, potentially impacting supply-and-demand dynamics.

Does Unrecoverable Bitcoins Impact the Supply?

The supply of Bitcoin is fixed and immutable; it increases every time a new Bitcoin block is mined. Nevertheless, not all Bitcoins in circulation are accessible. Bitcoins are deemed unrecoverable when:

Wallet's password and private keys are lost.
Hardware wallets storing Bitcoin are physically damaged.
BTC is sent to incorrect or non-existent addresses.
There are bugs in wallet software or blockchain applications.
Paper wallets become inaccessible due to loss or damage.

Approximately 4 million Bitcoins have been lost from the circulating supply. This reduces the Bitcoin supply from 21 million down to 17 million. Satoshi Nakamoto, the creator of Bitcoin, holds an estimated 1 million tokens. These tokens have remained idle in a wallet since 2010 — many argue that they should no longer be included in the circulating supply.

The Case of Stolen Bitcoins

Stolen Bitcoins are usually laundered before being cashed out. However, this is becoming increasingly difficult due to improvements in blockchain forensics. After all, Bitcoin transactions are posted to the public ledger. If stolen Bitcoins are moved from an identified wallet, law enforcement agencies can be notified in real-time.

This increases the risk of detection, so criminals will often leave the stolen Bitcoins sitting idle in the wallet. Consider the case of the 2011 Mt. Gox hack. The wallet address below has been identified as belonging to the hacker.

It's one of the largest Bitcoin wallets, with over 80,000 BTC. At the current rate, the wallet contains roughly $5.4 billion. Nevertheless, the tokens have remained idle since 2011; some argue that these 80,000 tokens shouldn't be included in the circulating supply.

The Future of Bitcoin Supply: A Deflationary Asset

The risk of Bitcoins being lost or stolen will never go away. This is another reason Bitcoin will become a deflationary asset when it reaches the maximum supply. No new tokens will enter the market, while the supply will keep declining with every stolen or lost token.

Save 30% on Bitcoin Magazine Pro's Bitcoin Analysis Tool With Our Annual Plan

Bitcoin Magazine Pro delivers a comprehensive suite of Bitcoin analytics tools to help investors and enthusiasts better understand it. The platform offers free, regularly updated Bitcoin charts with detailed explanations to simplify complex data. For those seeking advanced features, paid tiers provide:

Chart alerts
Exclusive indicators
Detailed market reports

Whether you're a Bitcoin investor seeking to understand price factors or an analyst looking to enhance your knowledge, Bitcoin Magazine Pro offers the clarity and insights needed for informed decision-making.

Sign up for an annual plan today and save 30% on Bitcoin Magazine Pro's Bitcoin analysis tools!

How Many Bitcoins Are There and Why It Matters to Investors

Dec. 23, 2024