Why does Bitcoin have a limited supply?

3 answers

• Dec 25, 2021 · 3 years ago
  Bitcoin has a limited supply because it was designed that way by its creator, Satoshi Nakamoto. The total supply of Bitcoin is capped at 21 million coins, and this limit cannot be changed. This limited supply is one of the key features that sets Bitcoin apart from traditional fiat currencies. It ensures that Bitcoin cannot be inflated or manipulated by central banks or governments. The scarcity of Bitcoin is believed to contribute to its value, as the demand for a limited resource tends to increase its price.
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• Dec 25, 2021 · 3 years ago
  Bitcoin's limited supply is a result of its mining process. Miners compete to solve complex mathematical problems, and the first miner to solve the problem is rewarded with newly minted Bitcoins. However, the number of Bitcoins that can be created through mining is halved approximately every four years in an event called the 'halving'. This halving reduces the rate at which new Bitcoins are introduced into circulation, ultimately leading to a finite supply of 21 million coins.
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• Dec 25, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that Bitcoin's limited supply is a deliberate design choice to create scarcity and maintain its value. The fixed supply of 21 million coins ensures that Bitcoin cannot be easily devalued through excessive printing or inflation. This scarcity, combined with the increasing adoption and demand for Bitcoin, has contributed to its significant price appreciation over the years.
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