Why is the Bitcoin supply limited to 21 million?

3 answers

• Steffensen DelacruzFeb 15, 2022 · 4 years ago
  The Bitcoin supply is limited to 21 million as a way to ensure scarcity and maintain value. By having a finite supply, Bitcoin is designed to be deflationary, meaning that over time, the value of each Bitcoin should increase. This is in contrast to traditional fiat currencies that can be printed endlessly, leading to inflation. The limited supply also creates a sense of urgency and demand, driving up the price. Additionally, the supply limit is a key feature that differentiates Bitcoin from other cryptocurrencies, making it a unique and valuable asset in the digital world.
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• Dagim AlemayehuJul 10, 2025 · 8 months ago
  The decision to cap the Bitcoin supply at 21 million was made by its creator, Satoshi Nakamoto. This limit was implemented to mimic the scarcity of precious metals like gold and silver. By creating a limited supply, Bitcoin aims to replicate the properties of these physical commodities, which have historically been used as stores of value. The scarcity of Bitcoin is also an important factor in its decentralization, as it prevents any single entity from having control over the supply and distribution of the currency.
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• Abhijith VNov 22, 2024 · a year ago
  As an expert in the cryptocurrency industry, I can confirm that the Bitcoin supply is indeed limited to 21 million. This supply limit is hardcoded into the Bitcoin protocol and cannot be changed without a consensus among the network participants. The reason for this limit is to ensure that Bitcoin remains a decentralized and trustless currency. By having a fixed supply, Bitcoin avoids the risks associated with central banks and government intervention. It also provides a predictable and transparent monetary policy, which is appealing to many investors and users of the currency.
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