Leading cryptocurrency bitcoin is on the verge of reaching max supply. On the first day of April, bitcoin wasn’t fooling anybody as it reached 19 million mined coins.
Entrepreneur and investor Anthony Pompliano, whose portfolio includes investments in cryptocurrency exchange Coinbase and crypto lending company BlockFi, tweeted about the feat on April 1. With 21 million coins available, that leaves 2 million left to be mined.
After a rough-and-tumble start to 2022, bitcoin has turned positive for the year with its price hovering between $45,000 and $46,000. The first bitcoin token was mined on January 3, 2009, which means it took just over 13 years to reach over 19 million mined.
Bitcoin’s latest price jump comes at a time when global inflation is rampant. The leading cryptocurrency can serve as an effective hedge against inflation as the U.S. Federal Reserve is expected to institute more rate hikes throughout the year to ward off inflation.
“Bitcoin is an effective hedge against inflation, thanks to limited supply and decentralization. These factors bring in scarcity and resilience power,” a Cointelegraph article explains.
“Pre-set limits on Bitcoin in circulation mean no excess supply, keeping inflation in check,” the article notes, referencing the government’s ability to print more dollars as opposed to bitcoin’s fixed supply. “Moreover, the digital coin’s annual rate of mining dips by 50% roughly every four years. Taking into account of the current supply schedule, Bitcoin’s annual rate of production will be approximately half of gold’s and will continue to go down, making it more scarce than the metal and driving up its value.”
Bitcoin Hits 19 Million Mined as it Nears Full Supply 1
Bitcoin has started to see wider acceptance from the traditional finance community. This includes global investment firms like Goldman Sachs getting ready to offer the top two cryptocurrencies by market capitalization to its clients.
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“Wall Street titan Goldman Sachs seems to be all in now when it comes to Bitcoin and Ethereum with plans to offer its high-net worth clients access to the digital coins through a third-party issuance from Galaxy Digital,” a Forbes report says.
“Remember Goldmans Sachs claims that Bitcoin currently has a 20% share of the “store of value” market, according to Goldman Sachs analyst Zach Pandl,” the report adds. “This means the asset, Bitcoin, can maintain its worth over time without depreciating, in comparison to precious metals or some currencies.”
