Bitcoin Supply and Demand, and Why Block 924,025 Is So Critical
This week, something remarkable took place in the world of Bitcoin.
On the surface, Block 924,025 may seem bland, just another 10-minute tick in Bitcoin's heartbeat - yet economists will look back upon this block as evidence that helped explain how Bitcoin became the backbone of an entirely new financial system.
Block 924,025 marked the point at which 95% of all Bitcoin mined had already been mined, marking its official achievement of reaching this important milestone.
Put this into context for yourself. That means 95% is already out there circulating through our world economy and being used by someone.
Only five percent remains and will gradually dissipate over the next 114 years.
What does this mean, and why should everyday people care?
Everything comes down to one of the easiest economic principles:
Supply & Demand in Bitcoin Edition
Supply and demand isn't complex. When something scarce becomes popular among many, its value increases dramatically while when there is plenty available but no desire for it, its price drops drastically.
Most assets--stocks, dollars and even real estate--can have their supply altered at will.
But Bitcoin? Laughs at this idea of "printing more."
Setting A Hard Cap That Cannot Be Broken.
No more than 21 million Bitcoin will ever exist - never 21.1 million and certainly never 22 million! And with block 924,025, we have now mined 95% of this hard cap, the remaining 5% will be distributed as block rewards over time until 2140.
That is an extraordinary supply schedule! In modern economics, no other scenario comes close.
Compare Bitcoin Supply and Demand against USD
Dollar supplies increase each year, often significantly.
Governments are equipped to issue more currency at any given time if needed, it's built into their system.
But as supply increases, your purchasing power decreases - this explains why groceries, insurance, and housing all quietly become more costly every year.
Bitcoin subverts this logic:
Fixed Supply
Predictable Issuance No Central Authority with Power to Alter Rules
This results in a vastly different economic environment - one in which demand becomes the driving factor.
What Can Happen If Supplies Reach Their Limit?
Now comes the exciting part:
Once 95% of coins exist, their value becomes entirely driven by demand.
Future supply increases will likely be modest.
Over the next 30 years, only a sliver of new Bitcoin will enter circulation.
Over the next century or so, even less is expected of our economy.
But at the same time...
new countries are adopting Bitcoin.
Large hedge funds and institutions are purchasing.
Banks have begun offering cryptocurrency custody solutions.
Retail investors are gradually understanding why Bitcoin matters.
Younger generations increasingly prefer cryptocurrency savings over more conventional options.
Demand is on the rise, while supply is virtually exhausted.
Economics degrees don't provide you with all of the answers. All it takes to see where this leads is a simple intuition.
Block 924,025 Was a Turning Point
As news of Bitcoin crossing 95% mined broke, it did not capture headlines nightly.
But historians will eventually look back and say:
"Bitcoin had reached its maturity stage, as its scarcity became tangible and undeniable. “
Block 924,025 was not just any block. It marked the moment Bitcoin evolved from being an experiment into being an actual asset class.
First time ever, most of its supply has already been identified and distributed across the globe.
Future of Bitcoin Will be Determined Not by Miners... but by Demand.
Everyone Should Keep An Eye Out
Because we live in an age where:
Everyday spending consumes more and more of our purchasing power, leading to less for each dollar spent.
Our systems have become more and more unstable.
And one digital asset with limited supply is quietly reaching maturity.
If you view Bitcoin as just another fad, its entrance into its final 5% of issuance should make you reconsider.
History often rewards those who recognize the math behind scarce assets like real estate early enough, when their value drops every four years and demand grows exponentially.
Conclusion and Takeaways
Congratulations! We just passed 95%.
The next major milestone will occur when we reach 98% and then 99% adoption, before final Bitcoin production in 2140.
With each passing step, Bitcoin becomes less of a gamble and more of a predictable, mathematically-governed global asset.
Block 924,025 didn't just move us closer to the future - it reinforced why studying Bitcoin might be one of the most significant financial decisions you will make.
