How does the limited supply of bitcoin contribute to its long-term value?

3 answers

• Pitts FrantzenJul 11, 2022 · 3 years ago
  The limited supply of bitcoin is one of the key factors contributing to its long-term value. With a maximum supply of 21 million coins, the scarcity of bitcoin creates a sense of rarity and exclusivity. This scarcity is further enhanced by the halving events that occur approximately every four years, reducing the rate at which new bitcoins are created. As demand for bitcoin continues to grow, the limited supply ensures that the value of each individual bitcoin increases over time. Investors and enthusiasts are attracted to bitcoin as a store of value, similar to gold, due to its limited supply and the belief that it will become increasingly valuable in the future.
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• Smed RatliffJun 01, 2021 · 4 years ago
  The limited supply of bitcoin is like a digital version of gold. Just as gold is valuable because it is scarce, bitcoin's limited supply makes it valuable. With only 21 million bitcoins that will ever exist, the supply is fixed, which means that as demand increases, the price of bitcoin is likely to rise. This scarcity also creates a sense of urgency among investors, as they know that once all the bitcoins have been mined, there will be no more new supply. This anticipation of future scarcity contributes to the long-term value of bitcoin.
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• bwallisJan 21, 2024 · 2 years ago
  The limited supply of bitcoin is a fundamental aspect of its long-term value. Unlike traditional fiat currencies that can be printed endlessly, bitcoin has a maximum supply cap of 21 million coins. This scarcity ensures that bitcoin cannot be devalued through inflation. As more people adopt bitcoin and the demand for it increases, the limited supply means that each bitcoin becomes more valuable. This scarcity also creates a sense of trust and stability, as the supply is predictable and cannot be manipulated by any central authority. Overall, the limited supply of bitcoin is a key factor in its long-term value and is one of the reasons why it is considered a valuable asset in the digital age.
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