When Bitcoin reaches its programmed limit of 21 million coins (expected to occur around the year 2140), several significant changes and impacts will occur in the Bitcoin system and the surrounding economy. Here are the main predictions:
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1. The disappearance of the mining reward (Block Reward)
Currently, miners receive a reward of new Bitcoins for verifying transactions.
After reaching 21 million, no new coins will be produced, and the issuance of rewards from Bitcoin itself will stop.
The primary income for miners will be from transaction fees only.
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2. Potential effects on the mining network
The number of miners may decrease if transaction fees are not sufficient to cover mining costs, which could affect:
Network security (fewer miners = less decentralization).
Speed of transaction processing.
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3. Bitcoin's transition to a scarce asset (Store of Value)
Currency scarcity (completely limited supply) may make it like digital gold:
High value due to demand and supply scarcity.
It may be used more as a store of value rather than a daily means of exchange.
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4. Increased fees
With increased network usage and a fixed number of Bitcoins, transaction fees are expected to rise to maintain miners' incentives.
This may drive developers to create scaling solutions like the Lightning Network to speed up and reduce transaction costs.
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5. The impact on price
If demand for Bitcoin remains high, scarcity is expected to significantly drive up the price.
But the price will still be affected by factors such as regulations, institutional adoption, the global economy, and others.
