The Divisibility of Bitcoin

When the last bitcoin is mined, around the year 2140, there will be 20,999,999.9769, rounded off to 21 million, bitcoins in circulation. This seems a way small number of units given that Bitcoin aspires to be not only a mainstream currency but also one that covers the entire globe.

Indeed, nearly every bitcoin enthusiast, user or critic has asked, at one time or another, whether 21 million bitcoins are enough to facilitate hundreds of millions of transactions that take place both within and across international boundaries per hour.

There is enough bitcoin for 16 billion human beings

This question seems even more credible when you consider that, aside from the growing adoption of bitcoin, the world’s population is steadily on the increase. According to projections published by the Science Magazine, Earth will be home to close to 16 billion people by the year 2140.

Having 10% of that population using bitcoin first will require close to two billion wallets, assuming each user will have only one wallet. That is about 1000% more than the number of bitcoins in circulation.

So, are 21 million bitcoins sustainable in such a world?

The power is in the divisibility

Absolutely! The Bitcoin protocol can handle an enormous amount of transactions. How that is possible lies in one of the cryptocurrencies characteristics; divisibility.

Indeed, divisibility is one of the four characteristics of any form of money; commodity, fiat or cryptocurrency. The others being durability, transportability, and non counterfeit ability.

Divisibility ensures that money can be broken down into smaller units that can be used in exchange for goods of varying values.

Over two quadrillions units are available

On its part, a single bitcoin is divisible by eight decimal points. The smallest unit is the Satoshi, which is also referred to as a bit, hundredth of a millionth bitcoin (1 satoshi = 0.00000001 BTC). Therefore, each Bitcoin can be broken down into 100,000,000 satoshis.

If you convert 21 million bitcoins into satoshis you have slightly over two quadrillions, enough units to go around. In fact, every world citizen in 2140 could own an average of 131,250 satoshis.

Even if the need exceeded this, it is possible to have the Bitcoin protocol and related software modified to handle even smaller divisions.

Indeed, there is enough room for splitting Bitcoin to get a piece in the hands of everyone who needs it around the world!