Bitcoin has a hardcoded maximum supply of 21 million coins. This limit is built into the protocol and is one of the core features that differentiates Bitcoin from traditional currencies.
New bitcoins enter circulation through mining. Miners secure the network by validating transactions and adding new blocks to the blockchain, and in return they receive newly created coins as a reward. However, this issuance does not remain constant. Over time, the amount of bitcoin released to miners decreases through events known as “halvings,” which cut the block reward in half roughly every four years.
A major milestone has now been reached: 20 million bitcoins have been mined since Bitcoin’s launch in 2009. That means more than 95% of the total supply is already in circulation.
The remaining 1 million coins will not appear quickly. Due to Bitcoin’s programmed issuance schedule, they will be gradually released over the next century. As a result, the flow of new bitcoins entering the market will continue to slow down.
This decreasing supply growth is one of the key reasons Bitcoin is often described as a scarce digital asset. With fewer new coins being created over time, Bitcoin’s fixed supply stands in stark contrast to inflationary monetary systems where new money can be printed indefinitely.
