Why is the number of Bitcoin limited to 21 million and not more?

3 answers

• Dec 26, 2021 · 3 years ago
  The maximum supply of Bitcoin is limited to 21 million because it was designed to mimic the scarcity of precious metals like gold. By setting a finite supply, Bitcoin aims to maintain its value over time and prevent inflation. This scarcity also creates a sense of exclusivity and makes Bitcoin more desirable for investors and collectors. Additionally, the limited supply encourages early adoption and incentivizes mining, as miners are rewarded with newly minted Bitcoins for their computational work.
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• Dec 26, 2021 · 3 years ago
  The decision to limit the number of Bitcoins to 21 million was made by Satoshi Nakamoto, the anonymous creator of Bitcoin. It was a deliberate design choice to ensure the long-term stability and sustainability of the cryptocurrency. By capping the supply, Bitcoin avoids the pitfalls of excessive money printing and the devaluation of currency that can occur in traditional fiat systems. This fixed supply also adds a layer of predictability and transparency to the Bitcoin ecosystem, making it more attractive to investors and users alike.
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• Dec 26, 2021 · 3 years ago
  The number of Bitcoin being limited to 21 million is a fundamental aspect of its monetary policy. This policy is enforced by the Bitcoin protocol and cannot be changed without a consensus among the network's participants. The limited supply is crucial for maintaining the integrity and trustworthiness of the cryptocurrency. It ensures that Bitcoin remains a decentralized and censorship-resistant form of money, as no single entity or government can arbitrarily increase the supply. This feature sets Bitcoin apart from traditional currencies and gives it unique properties as a store of value and medium of exchange.
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