What is the significance of the 21 million Bitcoin limit?

3 answers

• Muzammil ZiaOct 22, 2024 · 9 months ago
  The 21 million Bitcoin limit is a fundamental aspect of Bitcoin's design. It ensures scarcity and prevents inflation. By capping the total supply at 21 million coins, Bitcoin becomes a deflationary asset over time. This scarcity and deflationary nature make Bitcoin an attractive store of value and a hedge against traditional fiat currencies. Additionally, the limited supply creates a sense of urgency and demand, driving up the price. Overall, the 21 million Bitcoin limit is crucial for maintaining the integrity and value of the cryptocurrency.
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• marielouJun 11, 2021 · 4 years ago
  The 21 million Bitcoin limit is like a built-in safeguard against excessive inflation. Unlike fiat currencies that can be printed endlessly, Bitcoin has a finite supply. This means that as more people adopt Bitcoin and demand increases, the supply remains fixed, leading to potential price appreciation. The limited supply also encourages saving and long-term investment in Bitcoin, as holders anticipate its increasing value over time. It's a unique feature that sets Bitcoin apart from traditional currencies and contributes to its growing popularity.
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• Kusk BakerSep 14, 2021 · 4 years ago
  The 21 million Bitcoin limit is a concept that was introduced in the original Bitcoin whitepaper by Satoshi Nakamoto. It ensures that there will never be more than 21 million Bitcoins in existence. Currently, around 18.5 million Bitcoins have been mined, leaving approximately 2.5 million left to be mined. Once all 21 million Bitcoins are in circulation, no more new Bitcoins will be created. This scarcity is one of the reasons why Bitcoin is often referred to as 'digital gold' and why it has gained a reputation as a hedge against inflation and economic uncertainty.
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