How does the limited supply of 21 million bitcoins affect its value?

3 answers

• Mcpherson GonzalezSep 01, 2023 · 2 years ago
  The limited supply of 21 million bitcoins is a key factor in determining its value. Unlike traditional currencies, which can be printed or created at will by central banks, bitcoins have a fixed supply. This scarcity creates a sense of rarity and exclusivity, which can drive up demand and, in turn, increase the price. As more people become interested in owning bitcoins, the limited supply can lead to a supply-demand imbalance, pushing the price higher. Additionally, the fact that bitcoins cannot be easily replicated or counterfeited adds to their value as a secure and trustworthy form of digital currency.
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• 21 - M Rifqi AlfariziJan 21, 2022 · 4 years ago
  The limited supply of 21 million bitcoins is a deliberate design choice by the creator of Bitcoin, Satoshi Nakamoto. By capping the supply, Nakamoto aimed to create a deflationary currency that would appreciate in value over time. This scarcity feature is often cited as one of the main reasons for investing in bitcoins. As the supply becomes increasingly scarce, the theory is that the demand will continue to rise, driving up the price. However, it's important to note that other factors, such as market sentiment and regulatory developments, can also influence the value of bitcoins.
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• Andrey OrekhovAug 27, 2024 · a year ago
  The limited supply of 21 million bitcoins is a fundamental aspect of Bitcoin's monetary policy. It ensures that there will never be more than 21 million bitcoins in existence, which creates a predictable and transparent supply schedule. This predictability is attractive to investors and can help to build trust in the cryptocurrency. As the supply of new bitcoins decreases over time due to the halving events that occur approximately every four years, the scarcity factor becomes even more pronounced. This can lead to increased demand and potentially drive up the value of bitcoins.
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