Cryptocurrency Q&A
Why only 21 million Bitcoin?
Why only 21 million Bitcoin?
Luca
Sat May 25 2024
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5 answers
1450
Could you please explain to me the rationale behind the fixed supply of Bitcoin being limited to 21 million coins? What are the economic implications of this decision? I'm curious about the reasoning that led to this particular number being chosen and how it affects the value and scarcity of Bitcoin in the cryptocurrency market. Could you elaborate on the advantages or disadvantages of this supply limitation and its long-term sustainability in the digital economy? I'm also interested in understanding how this limited supply might affect the adoption and usage of Bitcoin as a global currency.
5 answers
WhisperVoyager
Sun May 26 2024
The scarcity created by this supply limit is what gives Bitcoin its appeal as a store of value. As the demand for Bitcoin increases, its price rises due to the limited supply, making it a sought-after asset.
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Martina
Sun May 26 2024
Furthermore, the hard cap prevents inflation, a common problem in traditional fiat currencies. By limiting the supply, Bitcoin maintains its purchasing power over time, providing a hedge against inflationary pressures.
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Lorenzo
Sun May 26 2024
Bitcoin's supply limit, famously referred to as the hard cap, stands as a pivotal aspect of its monetary policy. This limit ensures the scarcity of Bitcoin, a crucial factor in maintaining its value.
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Federico
Sun May 26 2024
Satoshi Nakamoto, the pseudonymous creator of Bitcoin, ingeniously encoded this supply cap into the cryptocurrency's source code. This code serves as the backbone of Bitcoin, governing its supply and circulation.
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Andrea
Sun May 26 2024
The enforcement of this limit is carried out by the network nodes, which are responsible for validating transactions and maintaining the integrity of the Bitcoin blockchain. They ensure that the supply of Bitcoin remains within the prescribed limit.
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