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Bitcoin Falls Below $50,000 As Over 90% Of All Coins Are Mined

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Bitcoin, the largest cryptocurrency in the crypto sector, is frequently referred to as “digital gold” due to its features as a store of value with a limited supply.

The total quantity of the cryptocurrency is limited and pre-defined at 21 million coins; once these coins are mined, no more may be created.

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Until that limit is reached, new coins are created through a process known as mining, which is a mathematically complicated and highly competitive process of adding and verifying batches (or blocks) of transactions to Bitcoin’s public network.

According to Blockchain.com data, 18.89 million coins, or almost 90% of all coins that will ever exist, have already been mined, emphasising the scarcity even further.

Bitcoin took nearly 13 years to arrive after its pseudonymous founder Satoshi Nakamoto mined the first block, also known as the Genesis block, on January 9, 2009.

However, mining the remaining supplies will take longer. The remaining 2.1 million Bitcoin are predicted to be generated by 2140, or in as long as 119 years, due to Bitcoin’s halving function.

The halving is a core pillar of Bitcoin’s deflationary monetary policy, occurring after every 210,000 blocks generated, or roughly every four years, and halves the reward miners receive for their efforts. Each halving event reduces Bitcoin’s issuance rate until no new coins are issued.

Bitcoin miners currently receive 6.25 BTC for each discovered block, with the reward slated to decline to 3.125 BTC after the next halving.

According to data dashboard Clark Moody Bitcoin, the next such occurrence is scheduled for May 2024.

Meanwhile, Bitcoin’s two other important measures have recently set new highs, demonstrating that the network has fully recovered from China’s enormous crypto crackdown and the resulting migration of miners to greener pastures.

China prohibited licenced financial institutions from providing cryptocurrency-related services such as trading, clearing, and transaction settlement in May. Later that month, the country effectively began cracking down on Bitcoin mining, forcing significant corporations to relocate their operations outside.

As a result, Bitcoin’s hashrate began to decline, reaching a year-low of 84.79 EH/s in July.

According to Blockchain.com, the network has steadily recovered, with the hashrate reaching an all-time high of 181.77 EH/s, shattering the previous record of 180.66 EH/s set in May of this year.

The following day, Bitcoin mining difficulty (a measure of how difficult it is to mine new coins) reached a new all-time high of 24.45 trillion, up as much as 8.33 percent since the last adjustments.

This is the highest increase since August of this year, according to BTC.com.

When combined with the increased hash rate, this could signal that a large number of new mining equipment are entering the race, increasing competition among miners.

Despite the strong network fundamentals, Bitcoin’s price has yet to consolidate above the $50,000 mark that it briefly achieved last night. According to CoinGecko, the leading cryptocurrency is down 0.8 percent in the last day, changing hands to around $48,840.