How bitcoins scarcity could boost up its value

• Cøbra, the co-owner of Bitcoin.org has recently said that there will come a time in the future when more Bitcoins will be lost than mined on a daily basis. 
• Cøbra further said that this will create more scarcity which would essentially increase the value of each bitcoin that is currently retrievable. 

Cøbra, the co-owner of Bitcoin.org has recently said that there will come a time in the future when more Bitcoins will be lost than mined on a daily basis. Cøbra further said that this will create more scarcity which would essentially increase the value of each bitcoin that is currently retrievable. Comparing it to gold, he even said that it could be worth more if more of the precious-metal went out of circulation.

Every 10 minutes, it is estimated that just over six bitcoins are mined. Basically, this would mean that 900 bitcoins are mined on a daily basis.

This is a number that decreases every four years due to the bitcoin halving. One happened this year but it means that the bitcoin production is cut in half. Given that there are a limited number of bitcoins, they will all have been mined by 2140.

This doesn’t mean that all bitcoins will always be accounted for though. In many circumstances, people can lose access to their bitcoins which means they will be lost forever never to be touched or seen again.

Eventually the rate of Bitcoins lost each day will surpass the rate of Bitcoins mined each day. At which point the supply will actually be shrinking. Imagine how much gold would be worth if each day some gold vanished into nothingness and forever went out of circulation.

— Cøbra (@CobraBitcoin) August 23, 2020

There are many bitcoins that have been lost over the years but there is no way to calculate an exact number. Towards the end of 2017, the bitcoin hype train was at its highest and the analysis company Chainalysis found that more than 2.5 million bitcoins have potentially been lost and were officially out of circulation. To add more dread to that thought, a study by the same company in 2018 estimated that almost 40% of the then-current supply that is in circulation for bitcoin could be lost.

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!