Bitcoin is precious, and there is a limited supply of world’s biggest crypto currency. Cryptocurrency wallet and tracking website Blockchain.info shows on Saturday that total amount of Bitcoins in circulation crossed 16.8 million mark, that equals 80% of total bitcoins that could be mined (21 million).
According to the whitepaper issued by Satoshi Nakamoto, total bitcoin supply is limited at 21 million and 16.8 million have already been mined means 80% of Bitcoins are mined.
With less than 4.2 million tokens left to be mined, cryptocurrency is only 20 percent away from reaching its hardwired 21 million token limit.
There are currently just over 16.8 million tokens in circulation with market price of around $14000, and market cap of $240 billion.
Mining is getting tougher
Each bitcoin is mined from what is known as a block , a data set on the blockchain which releases a handful of tokens each time it is successful broken down.
But the computer algorithms behind the blocks are getting harder to crack. It is a feature of the system that encouraged early adoption and now fights off inflation.
The current block reward is 12.5 bitcoin, but approximately avery 210,000 blocks the reward is cut in half. This will happen sometime in 2020.
The original mining reward stood at 50 tokens before it was halved to 25 and then 12.5. The next reward will only account for 6.25 tokens per block, thus making mining unprofitable.
Price is expected to rise
The increasing difficulty is clear because all bitcoin were already mined by 2017, but between 2016 and 2017 only 7 per cent were released. Then from 2017 to 2018 only another 3 percent were mined, and next year this number is expected to be even lower.
Some experts have suggested that once the number of available tokens decreases, bitcoin’s price tag could go through the roof.
Jamie Redman, contributor to Bitcoin.com, said: “In most cases when an asset is limited and resources are harder to come by, the supply causes demand for the market.
“The supply of bitcoin shows a significant gap between how many there are and those who want to obtain some”
Price is expected to go higher by the time as mining rewards are shrinking and demand is getting higher.
Is Toronto Next to Accept Bitcoin for Property Taxes?
Toronto is the biggest city of Canada with a population of more than 6 million. It’s also one of the leading global financial centers which makes it an attractive place for investors.
Bitcoin has emerged as the leading cryptocurrency in the world and attracted a lot of attention from financial investors. There are many crypto exchanges and investors in Toronto, which makes it an important destination for crypto startups and investors.
Recently, there has been a surge in usage of Bitcoin in the Real Estate world as lot of companies around the world are now accepting Bitcoin for buying and selling of properties. In April 2019, Innisfil, A town located in Ontario, at a distance of about 1 hour drive from Toronto, announced that they will accept Bitcoin for property taxes at the municipal level. In July this year, Richmond Hill announced that they are ready to accept Bitcoin as a payment method for property taxes.
Evan Kuhn, Co-Founder of a Toronto based crypto exchange Coinberry believes that integration of Bitcoin as a payment method for property taxes in Toronto can reduce cost, not only for tax payers, but for municipalities as well. Kuhn mentioned
“It doesn’t cost homeowners to use the service, and it costs the municipalities far less in processing fees”
“A credit card company charges a 3% fee,” he said. “Our fee is .5%, so that’s a lot more beneficial for the municipalities.”
He further explained the entire process to make it simple for the users and for the authorities. “When a resident makes a payment through our exchange, the company immediately converts the Bitcoin into Canadian Dollars and pays the relevant authority, so in basic concept this entire process works like a credit card system but with lower fee for both parties”
Morning Crypto Roundup
- Crypto market entered into a consolidation phase, with market cap at around $265 billion, market is currently trading in a range
- Bitcoin stays above $10,000
- Gray scale reported in a recent report that there are 7.1 million active Bitcoin users worldwide with more than 32 million Bitcoin wallets.
- After Innisfil and Richmond Hills, is Toronto next to explore an opportunity to pay property taxes through Bitcoin?
- According to a report from CryptoCompare.com, Untrusted crypto exchanges are dominating the crypto volume with more than 2/3 share