Rob, one of our discord members raised some very valid questions recently: Does anyone know what happens to the big mining companies when they run out of Bitcoins to be mined? Seems like it won’t take too long before they hit the 21 million mark and there will be no more mining after that especially if competition increases?
Here’s my response:
The last Bitcoin is expected to be mined by 2140: we still have a long way to go.
However, to answer your question, companies are compensated or rewarded for mining Bitcoin in two ways.
- Direct reward in the form of Bitcoin for successfully creating the block. As of now, this reward stands at 6.2 Bitcoins. In 2009 it was 50 Bitcoins. This number will continuously decrease
- A block, ledgers around 2000-3000 transactions. Every transaction will generate revenue, meaning a transaction fee will be paid to the block creator, i.e., the mining companies. In this way, blockchain companies will be compensated the rest of their life for their contribution towards strengthening the blockchain process, a passive income so to speak of. That’s why blockchain Companies will sustain long term compared to other tech companies