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What does it mean that bitcoin has 90% of its coins in circulation?

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Bitcoin has set a new milestone by mining block #730002 and reaching the sum of 19 million BTC in circulation, which means that 90% of its coins are already circulating. This event occurs 13 years after its launch. With the mining of this block by the SBI Crypto group, Bitcoin continues to fulfill the promise of uninterrupted operation of its blockchain, along with that of a controlled emission of 21 million coins. During the thirteen years of existence, Bitcoin has been a revolution and from a mere technological curiosity it has become the digital asset with the highest value in the world.

Bitcoin 90% coins in circulation

 

But what does it mean that there are 19 million bitcoins in circulation? What can we expect in the near future? First of all, bitcoin reaffirms its scarcity and value to the world. To realize this great scarcity, it is enough to divide the 7.9 billion people that populate the planet and divide this figure by the 21 million bitcoins that will exist in its entire existence. The resulting figure is 0.00265822784 BTC. Which would be equivalent to about €111.94 for each of them.

 

 

This amount could mean that bitcoin is inapplicable as a world currency, but the reality is that each BTC is divisible by up to 8 decimal places, which gives rise to the satoshi unit. That is, there are 265822 satoshis for each person today. Again, this isolated data says nothing, but if we analyze it, it means that BTC has not stopped appreciating against fiat currencies, such as the euro or the dollar. Reasons for it? Many, but we will only name the two most important:

  1. Bitcoin is scarce and deflationary, making it increasingly valuable to those who use it as money.
  2. Fiat currencies and their “support” are diluted with uncontrolled issuance and shrinking growth forecasts.

The result is that fiat currencies lose value rapidly, while BTC gains it at the same rate. The following graph shows this reality:

1 Satoshi equal to 1 dollar, the next milestone of Bitcoin

 

The data at this point is irrefutable and the reality is that fiat currencies lose the race against satoshi. This leads us to see those 265,822 satoshis differently by asking ourselves the following question: What will happen when 1 satoshi = 1 dollar? In the crypto community there are those who claim that this will happen sooner rather than later. For that reason, they invite you to buy some BTC (or satoshis rather) and save them. So you can see how in the medium term (about 5 years) your investment becomes a significant amount. And they do all of this based on this data, data that can be freely seen and verified by everyone.

 

From this perspective, whoever has the aforementioned 265,822 satoshis could transform their €111.94 into a small fortune of €265,822. In a dual crypto/fiat world, this means financial stability. That a satoshi is equal to a dollar, also means one more milestone: an incredibly huge bitcoin market value. If the bitcoin market is currently valued at more than 882 billion dollars, it would be worth 1,900,000,000,000,000. That is, 1,900 billion dollars, on the traditional international scale, not Anglo-Saxon. For many, this might seem impossible, but looking at the previous graph, everything seems to indicate that it is only a matter of time.

Value explosion in DeFi and beyond

 

The rate of appreciation of bitcoin has been stupendous. Even with the arrival of bear markets, bitcoin has shown that its tendency to appreciate is unstoppable. Bitcoin has achieved these figures despite the campaigns of fear, persecution and veto that many countries have planted on the digital currency.

 

The reality is that bitcoin, being a decentralized currency, cares very little about all this and is based on proven facts. In this case, the facts are clear: bitcoin has proven to be a useful currency as a medium of exchange, with on-chain fees that have been low in recent months. Also, with the expanding Lightning Network, instant payments and micro payments are becoming more common within the network. All this underpins the value of bitcoin. 

The miners, far from worrying about the halvings and the possible reduction in their profits, are betting on their revaluation. In fact, important industry figures indicate that we could be close to the best times for bitcoin mining. A few moments that would last beyond the 2024 halving, when BTC will bring its rewards to 3,125 BTC per block.

The value explosion doesn’t just end there. DeFi protocols inside and outside of Bitcoin will also grow, which will certainly make the entire ecosystem stronger. The presence of tokens such as RenBTC or wBTC allows this type of value transfer, which ends up underpinning DeFi. In addition, platforms such as RSK and protocols such as Tropykus or Sovryn allow BTC to enter DeFi directly without the need for alternate networks and using their own sidechain secured by the same BTC network.

In any case, BTC still has a long way to go. The next 2 million BTC that remain to be mined will be mined over 120 years. We cannot know for sure what will happen during all that time, but we can venture to say that the footprint of BTC will forever be written in history.

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