What will happen to the price of BTC once the max circulation supply is reached?
What will happen to the price of BTC once the max circulation supply is reached?
Bitcoin miners (using computing power for verifying transactions and adding new blocks to the chain) are responsible for a very important part of the process which gives Bitcoin its value (safety, security) and they are incentivized with the minting of new Bitcoin. Once the total supply of BTC is in circulation, there will no longer be the financial incentive to pay the miners. Who will pay the miners and what are the long term implications of this in the price.
Obviously, we won’t be around to witness it but the idea is that by then, Bitcoin will be mainstream enough that transaction fees will make it profitable for miners to keep the network running. Halving was just to keep the currency deflationary. Satoshi: “Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees and be completely inflation-free.