There are no actually Bitcoins in physical form, but they do still exist! Sounds strange, I know.
Bitcoins are a digital or virtual currency. While there no way to touch of feel them, they line in 1s and 0s on the web, specially linked in the “blockchain”.
And what adds to Bitcoin’s appeal is its finite nature.
Only 21 million Bitcoins can ever be made, per the algorithm of Satoshi Nakamoto who/which released the currency back in 2009.
That 21 million max number is still over 100 years away from hitting which should reach its limit in 2140.
Currently, we are just over 19.4 million in circulation with about 10.5% still to be mined. Bitcoins are created via a complex process called “mining” in which computers solve equations to create coins that become available on this blockchain.
As the Bitcoin supply approaches its 2140 21 million limit, the rewards for mining new blocks will continue to decrease until there are no more Bitcoins left to mine and one would think the price would skyrocket.
The supply of Bitcoin is often compared to gold, which is also a scarce asset. However, unlike gold, which can be mined indefinitely, the supply of Bitcoin is finite. Key difference. This gives Bitcoin a unique advantage over other forms of currency, as it cannot be inflated through the printing of new units like dollar bills.
It’s important to note that the total supply of Bitcoin does not equate to the number of Bitcoins that are actually in circulation. Many Bitcoins have been lost over the years due to forgotten passwords, hard drive failures, and other reasons. It’s estimated that between 2.5 and 4 million Bitcoins have been lost or stolen over the years, which means that the actual number of Bitcoins in circulation is lower than the total supply.