What happens when 21 million Bitcoin are fully mined? Expert answers
When the last Bitcoin (BTC) is finally mined, the livelihood of miners who rely on block rewards as a source of income will be affected. Despite this, the future of mining stays promising, according to an expert in space.
In a Cointelegraph interview, Mohamed El Masri, the founder of mining solutions provider PermianChain, talked about new players jumping into mining, the future of mining and what happens to mine profitability after the 21 millionth BTC is minted.
El Masri highlighted that efficiency is a very important focus that new players in the space must take into consideration. Because mining profit depends on how efficient a mining operation is, the executive noted that efficiency brings down the cost of energy to a minimum.
When asked about the future of the mining space, the executive shared that it’s not always about profit. El Masri said that the future of the mining sector relies on what he described as the “real Bitcoin miners” who value solving blocks more than how much BTC they can convert into fiat currency. The executive noted that these types of miners will be the leading operators in the space. He explained that:
“The future of the Bitcoin mining sector depends on the continued commitment of industry players to support the infrastructure of this monetary and financial breakthrough, at any cost necessary.”
The executive also shared his predictions on what the industry will look like once the last BTC is mined. According to El Masri, when the time comes, a BTC mining business can still be profitable because transaction fees will replace block rewards as a source of revenue for miners. By then, the mining executive predicted that BTC would be worth $430,500 each.
Related: BTC mining costs reach 10-month lows as miners use more efficient rigs
El Masri explained that transaction fees will generate almost $3 billion in a year at this price point. He noted that there are also other growth drivers to consider, including layer 2 improvements and energy efficiency enhancements.
In a panel hosted by Cointelegraph Research, Bitcoin mining experts shared how they prepare for the next Bitcoin halving. According to the panel, several possible moves exist, including planning for survival during the bear market and capitalizing on the bull market.