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The global fiat money supply is often thought of as broken into different buckets, M0, M1, M2, and M3.7 M0 refers to currency in circulation. M1 is M0 plus demand deposits like checking accounts. M2 is M1 plus savings accounts and small time deposits (known as certificates of deposit in the United States). M3 is M2 plus large time deposits and money market funds. Since M0 and M1 are readily accessible for use in commerce, we will consider these two buckets as medium of exchange, whereas M2 and M3 will be considered as money being used as a store of value. As part of their monetary policy, most governments maintain some flexible control over the supply of currency in circulation, making adjustments depending upon economic factors. This is not the case with Bitcoin. So far, the continued availability of more tokens to be generated has encouraged a robust mining community, though this is liable to change significantly as the limit of 21 million coins is approached. What exactly will happen at that time is difficult to say; an analogy would be to imagine the U.S. government suddenly ceased to produce any new bills. Fortunately, the last Bitcoin is not scheduled to be mined until around the year 2140.8 Generally, scarcity can drive value higher. This can be seen with precious metals like gold. Click here for cryptocurrency Links What is Cryptocurrency Mining? Logan Ross Contributor, Benzinga January 19, 2021 Updated: January 26, 2021 Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more. Want to jump straight to the answer? The best crypto platform for most people is definitely eToro. You may have heard the term mining in relation to Bitcoin or cryptocurrency in general - but it isn’t quite obvious what it means in that context. Mining in the crypto world is the process of keeping blockchain data in check. It involves hard work (done by computers) and results in a slow accumulation of resources - just like mining for minerals. Anyone can become a miner, but mining is not for everyone. Over 70% of Bitcoin mining happens in China, where dirt cheap e...