Bitcoin's Effective Circulating Supply Likely Lower Than Expected
Binance founder Changpeng Zhao (CZ) recently shared that over 20.07 million Bitcoin has been mined, reaching 95.6% of its maximum supply of 21 million. According to CZ, only 4.4% of the total supply remains to be mined.
This milestone underscores the scarcity that underpins Bitcoin's value proposition. The protocol caps the total supply at 21 million coins, making it a deflationary asset unlike fiat currencies that can be printed in unlimited quantities.
CZ also estimated that 10-20% of existing BTC has been lost or is inaccessible due to forgotten private keys, hardware failures, or other mishaps. This would bring the effective circulating supply down to between 16.06 million and 18.06 million BTC.
The concept of a deflationary asset is central to Bitcoin's design. Its fixed supply contrasts with fiat currencies that can be inflated by central banks. The remaining supply will be mined over the next century, with the last bitcoin expected to be mined around 2140.