Satoshi Nakamoto produced the first ever bitcoin in January 2009 when there were only 21 million coins left to be mined. As per the bitcoin theory, higher the number of coins produced, higher will be their price or you may say higher would be the price as lesser coins are left to be produced. Generally, as per the law of economics, the price of a commodity should rise with increase in demand as well as limited availability of the commodity. On January 13, 2018, 16.8 million bitcoins have already been produced across the world while the remaining 4.2 million digital coins are left for the coming years. This is the result of the increasing demand for the cryptocurrency, which leaves people to speculate of bitcoin prices to rise up in the coming years.
Bitcoins are produced as a reward for ‘mining’ – which involves collection of several blocks via a technology known as ‘blockchain’. The miners are rewarded with 12.5 bitcoins for adding one block to the chain. This reward amount is supposed to become half every 4 years, as per the protocol of bitcoins. So, this means in the next 2 years, the miners will get 6.25 bitcoins for every block and by 2140, the reward will be zero as 21 million coins will be mined by then.
Now let’s look at the statistics of bitcoin mining in the last 2 years. On January 15, 2017, total number of bitcoins mined were 16,104,750, which is around 77% of the total number of coins. In 2016, the number was 15,089,500, which implies 71.8% of the coins were mined. About 8.2% of the new bitcoins have been mined in the past 2 years.
On Monday, these bitcoins have been sold for $13,804 at BitStamp, which is a bitcoin exchange and for Rs. 10.23 lakhs at India’s Unocoin.