How is there a finite amount of Bitcoin (Cash)?

For those unfamiliar with the mining process, new Bitcoin Cash is created every time a new block is mined on the Bitcoin blockchain. This happens approximately every 10 minutes. The reason you may hear that there will be only “21 million Bitcoins” produced by the year 2140 is the geometric decrease in block reward resembling the rate in which commodities like gold are mined. The protocol states that there is a 50% reduction in block reward every 210,000 blocks mined. Utilizing the assumption that a block is mined every ~10 minutes, this halving of block reward should happen about every 4 years. The ~10 minute duration in solving the “puzzle”, uses a difficulty adjustment algorithm in order to ensure that miners face a certain level of difficulty in solving the “puzzle”. The difficulty adjustment algorithm essentially uses multiple factors in order to keep the difficulty of mining a block high enough to take at least 10 minutes. The current block reward today (3/27/2018) is 12.5 targeting to half to 6.25 in 2021. Eventually this block reward will approximate to 0 and at this point the only revenue for miners will be fees. However, it is important to note that by this time, there will be so many transactions using Bitcoin Cash, the fees will remain at extremely low level. Higher the utility and velocity of Bitcoin Cash, the lower the fees will remain… The true vision of Satoshi Nakamoto’s Bitcoin.

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