How many bitcoin are there? Bitcoin supply explained
There are approximately 20 million bitcoin in circulation as of 2024.
Once the number of bitcoin in circulation reaches the 21 million supply limit, the protocol will no longer issue new bitcoin.
The circulating supply of Bitcoin is expected to reach the max supply limit of 21 million coins near the year 2140.
A beginner’s guide to bitcoin's scarcity 📕
In a world of excess and abundance, Bitcoin (BTC) stands as one of the few truly scarce assets.
Unlike traditional currencies with unlimited supply, Bitcoin’s maximum supply is permanently capped at 21 million coins. This fundamental characteristic, ingrained in its DNA since its creation by Satoshi Nakamoto, is a cornerstone of Bitcoin’s value proposition.
A resounding 73% of U.S. crypto holders plan to keep investing in cryptocurrency in 2025, signaling a long-term view of the crypto market. This enduring belief in Bitcoin’s potential is likely influenced by its inherent scarcity and the growing recognition of its role as a digital store of value.
But, don't anticipate Bitcoin’s full 21 million coin supply to fully enter circulation soon. Bitcoin's built-in halving mechanism slows down the creation of new coins, with estimates suggesting the final bitcoin won't be minted until 2140.
Learning the reasoning and effects behind bitcoin’s limited supply is an important part of understanding what makes the world’s largest crypto asset so popular.
Why is Bitcoin's supply limited to 21 million? 🧐
The exact reasoning behind Satoshi Nakamoto's decision to limit Bitcoin's supply to 21 million is unknown. In an email sent in 2009, Nakamoto admitted that their decision to set the maximum supply limit at 21 million coins was an “educated guess.”
Here, Nakamoto gives the impression that they were not primarily concerned about what Bitcoin’s maximum supply limit should be, but more so that it had a maximum supply limit at all.
While new units of any government-issued currency can be and often are created at will, the same is not true for bitcoin's issuance schedule. This focus on proveable scarcity distinguishes Bitcoin from the trust-based approach governments use to maintain their currency.
Is it possible to change bitcoin’s maximum supply? 🎚️
In theory, Bitcoin’s maximum supply limit could be changed if there was consensus from the majority of network participants.
However, due to the importance of Bitcoin’s upper limit, it’s incredibly unlikely anyone, let alone the majority of the network, would agree to alter the number.
Any change would likely undermine the integrity and the predictability of Bitcoin's monetary policy, making it far less attractive to institutional and individual investors.
What is Bitcoin's circulating supply now? ⏰
Today, approximately 20 million bitcoins are in circulation, representing over 93% of the supply cap.
While this may seem like a large number given the relatively short amount of time Bitcoin has existed, the final 1 million coins will take significantly longer to enter into circulation because of bitcoin halvings. Halvings are events that progressively slow new coin creation, extending the time it takes to mine the full supply of bitcoin.
Bitcoin's fixed supply cap creates two key benefits:
- Scarcity: Many feel Bitcoin's focus on scarcity is a fundamental aspect of its design that helps distinguish it from government-issued fiat currencies. While governments can freely choose to modify the amount of fiat currency they have in circulation, the hard-coded rules of bitcoin make it impossible for any single person or party to change its maximum supply limit.
- Inflation control: Traditional currencies, like the U.S. dollar, are susceptible to inflation because central banks can print more money as they wish, thereby reducing the purchasing power of the already existing units of their currency. Bitcoin's capped supply offsets this inflation risk — the protocol’s code ensures there will never be more than 21 million bitcoin in circulation.
How many Bitcoins are left to mine?
There are roughly 1 million bitcoin yet to be mined out of a total supply capped at 21 million.
This remaining portion will be gradually released over time, with the final bitcoin estimated to be mined around 2140.
How are Bitcoins created and released into circulation? ⚙️
Bitcoins enter circulation for the first time as a reward for the miner that helps to validate a new block of transactions as part of the bitcoin mining process.
The Bitcoin protocol automatically manages the creation and issuance of new bitcoin following a set of rules that control how the mining process works. These rules have remained virtually unchanged since the protocol was launched.
Bitcoin delivers on this functionality as a peer-to-peer electronic cash system by using a variety of technical concepts, such as cryptography and consensus mechanisms, that allow it to essentially operate autonomously.
Consensus mechanism
Bitcoin operates using the proof-of-work (PoW) consensus mechanism. This blockchain-based system incentivizes Bitcoin’s users to work collaboratively in the best interests of the network.
More specifically, PoW involves a process known as “mining,” whereby network users compete against one another to earn the right to propose the next block of transactions in the bitcoin blockchain. The combined computational power and economic costs involved in mining are important features that help to secure the network.
Block rewards
Whoever wins the mining competition receives a "block reward" containing newly created bitcoin plus any transaction fees that may be included. This process is how each of the 21 million bitcoin that will ever exist are created.
The very first block (known as the Genesis block) contained a block reward of 50 BTC. After each of these early blocks of bitcoin transactions were created, 50 bitcoin were created for the first time.
Each time a winning miner receives their block rewards, Bitcoin’s circulating supply increases. The Bitcoin protocol is programmed to create blocks, and therefore distribute these block rewards, every 10 minutes.
Miners currently earn 3.125 BTC for each block they successfully mine. The most recent halving event on April 19, 2024, reduced the reward from 6.25 BTC to this current amount. This halving process will continue until the maximum supply of 21 million bitcoin enters circulation.
How many Bitcoins are lost? 💨
Pinpointing the exact number of lost bitcoin is tricky. Bitcoin transactions are anonymous, and there's no central authority dedicated to keeping tabs on lost coins.
However, several factors suggest a significant portion of the total supply might be inaccessible:
- Lost keys: Losing private keys due to hard drive failures, forgotten passwords or misplaced storage devices essentially renders the bitcoin inaccessible.
- Early Bitcoin forgotten wallets: Bitcoin's early adopters may not have anticipated its future value. Some might have lost access to their bitcoin for this reason.
- Intentional loss: Some users have opted to 'burn' their bitcoin by sending them to addresses with no corresponding private key, permanently removing them from circulation.
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