Bitcoin Milestone: The 800,000th Block Mined

The Bitcoin (BTC) network reached a significant milestone on July 24th. The 800,000th block was successfully mined, marking a momentous achievement for the once obscure project that has been running for 14 years. With a total of 19.437 million BTC created, this milestone highlights the growth and success of Bitcoin.

During this period, miners have earned substantial rewards. The 800,000 blocks have generated over $52.5 billion. The majority of these earnings, 94.5%, come from the standard bitcoins created with each block, while the remaining 5.5% is attributed to additional transaction fees.

The Unmoved 1.5 Million BTC

Approximately 1.5 million BTC has remained untouched in wallets for 13 years, most likely due to loss or forgotten access. In the early days of Bitcoin, when prices were virtually negligible, some individuals purchased bitcoins and simply forgot about them. Consequently, these bitcoins are now inaccessible, as their owners have lost the means to access their wallets.

The Majority of Bitcoin Held Outside Exchanges

Surprisingly, almost 75% of all BTC is held outside of crypto exchanges. This trend aligns with the original intentions of the creator(s) to counter centralization. When a significant portion of Bitcoin is held by long-term investors, it contributes to price stability. These long-term holders, often referred to as “hodlers,” are less likely to sell during price fluctuations, thus reducing price volatility. Additionally, limited liquidity exists as a substantial amount of BTC is unavailable on exchanges for immediate sale.

The Impending Bitcoin Halving

The fourth halving event is approximately 40,000 blocks away. It is projected to occur in about nine months, potentially in April or May of 2024. This event will further increase the scarcity of Bitcoin and subsequently affect its price. Since miners receive only half the reward after a halving, some miners may choose to cease mining if it becomes unprofitable for them. This reduction in mining activity can lead to a decrease in the network’s hashrate, which represents its computational power.

Tags: Bitcoin, BTC, Record