Why the Price of Bitcoin will increase dramatically?
Nowadays there are many people complaining because the price of bitcoin fell from about 20.000$ to less than half its value. Currently, it's trading
Bitcoin has slid from roughly $20,000 to about $6,000, and holders are understandably frustrated. Yet the coin's own monetary rules point to a very different long-term picture.
The core argument rests on a simple fact: Bitcoin's supply is finite, and the pace at which new coins enter circulation is set to shrink dramatically in the years ahead.
Key takeaways
- Bitcoin currently trades near $6,000, down from about $20,000 at its peak.
- Miners receive 12.5 BTC per block, with a new block roughly every 10 minutes.
- That works out to about 1,800 BTC — around $10 million — issued every day.
- Future reward eras will cut the block subsidy to 6.25 BTC and then 3.125 BTC.
- By reward era 5, more than 95% of all bitcoins that will ever exist will already be in circulation.
Where the Price Stands Today
Bitcoin has fallen from roughly $20,000 to less than half of that value, trading on global markets at about $6,000. For many recent buyers the drawdown feels like a broken promise, but price alone tells only part of the story.
A Digital Currency With a Fixed Supply
Bitcoin is a digital currency with a finite and controlled supply. Unlike fiat money, no central authority can decide to print more of it; issuance is governed entirely by the protocol's mining schedule.
How New Bitcoins Are Created
Miners currently receive 12.5 BTC for each mined block, and a new block is found approximately every 10 minutes. The daily arithmetic is straightforward:
The Daily Issuance Math
6 blocks per hour × 24 hours × 12.5 BTC = 1,800 BTC injected into the Bitcoin ecosystem every day. At today's price, that is roughly $10 million of fresh supply hitting the market daily — a substantial figure for any asset.
The Coming Reward Eras
The reason for long-term optimism lies a few years down the road. In reward era 4, the block reward will decrease to 6.25 BTC. In reward era 5, it will drop again to 3.125 BTC.
Why the Halvings Matter
By the time the reward reaches 3.125 BTC per block, more than 95% of all bitcoins that will ever be mined will already be trading hands. Fresh issuance shrinks significantly, and — if interest in the asset holds — the price could rise by several orders of magnitude.
FAQ
Why has Bitcoin's price fallen so far?
Bitcoin has dropped from about $20,000 to roughly $6,000, less than half of its previous value. The article does not attribute the decline to a single cause, but frames it as a short-term move against a much longer supply-driven story.
How many new bitcoins are created each day?
Miners earn 12.5 BTC per block, with a new block appearing roughly every 10 minutes. That totals 1,800 BTC per day — around $10 million at current prices.
What are reward eras 4 and 5?
They are future stages in Bitcoin's issuance schedule. In reward era 4 the block subsidy falls to 6.25 BTC, and in reward era 5 it falls further to 3.125 BTC.
Why could shrinking rewards push the price higher?
By reward era 5, more than 95% of all bitcoins that will ever exist will already be in circulation. With so little new supply left to issue, the price could climb by several orders of magnitude.
Is Bitcoin's supply really limited?
Yes. Bitcoin is a digital currency with a finite and controlled supply, governed by a fixed issuance schedule rather than by any central authority.
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