Bitcoin's circulating supply surpasses 20 million as inflation dips below gold's

Bitcoin has reached a major milestone in its supply distribution. Over 95% of all coins that will ever exist are now in circulation. This comes as the network's inflation rate drops below that of gold, marking a shift in its economic model.

In April 2024, the fourth halving cut block rewards from 6.25 BTC to 3.125 BTC. Since then, around 450 new Bitcoin enter circulation daily. Block 939,999 pushed the total supply past 20 million for the first time.

Yet not all mined coins remain accessible. Estimates suggest 2.3 to 3.7 million BTC are lost forever, either through forgotten private keys or destroyed hardware. This includes roughly 1 million BTC mined by Bitcoin's creator, Satoshi Nakamoto, which have never moved. Some coins also vanish due to unclaimed coinbase transactions, where newly minted Bitcoin never enter circulation.

The next halving in 2028 will further reduce the block subsidy by half. This will lower Bitcoin's inflation rate to about 0.4%, well below gold's annual increase of 1.5%. Currently, the network's inflation sits at roughly 0.82%, expanding the supply by less than 1% each year.

Of the 20 million BTC mined so far, only 16.3 to 17.7 million are actually usable. The gap between theoretical and practical supply highlights how losses shape Bitcoin's long-term scarcity.

Bitcoin's controlled emission schedule ensures its supply will never exceed 21 million. With inflation already lower than gold's, the next halving will push it even further down. The combination of fixed issuance and permanent losses reinforces the asset's deflationary nature.