How does the limited supply of 21 million bitcoins contribute to the scarcity and value of the cryptocurrency?

DriplesMay 20, 2021 · 4 years ago3 answers

Can you explain how the fact that there will only ever be 21 million bitcoins in existence affects the scarcity and value of the cryptocurrency?

3 answers

Coates FrancisAug 24, 2021 · 4 years ago
The limited supply of 21 million bitcoins is a key factor in the scarcity and value of the cryptocurrency. With a fixed supply, as demand increases, the price of bitcoins tends to rise. This is because there is a finite amount of bitcoins available, and as more people want to own them, the price naturally goes up. The scarcity of bitcoins makes them more valuable and sought after by investors and users alike.
Boban MilosevicJul 28, 2020 · 5 years ago
Yo, so here's the deal. There are only gonna be 21 million bitcoins ever. That's it. No more. And because of this limited supply, the value of bitcoins can go through the roof. It's simple economics, my friend. When something is scarce, people want it more. And when people want something more, the price goes up. So, yeah, the limited supply definitely contributes to the scarcity and value of bitcoin.
Alicia HuntAug 25, 2021 · 4 years ago
The limited supply of 21 million bitcoins is a fundamental aspect of the cryptocurrency's design. It ensures that there will never be an infinite amount of bitcoins flooding the market, which would devalue the currency. This scarcity is what gives bitcoin its value and makes it attractive to investors. It's like having a rare collectible item - the rarer it is, the more valuable it becomes. So, the limited supply of bitcoins is a key factor in creating scarcity and maintaining the value of the cryptocurrency.