Cryptocurrency Q&A
Why is there a 21 million bitcoin limit?
Why is there a 21 million bitcoin limit?
SamsungShiningStar
Fri Jul 12 2024
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6 answers
1450
Could you elaborate on the rationale behind the 21 million Bitcoin limit? I'm curious to understand why this specific number was chosen and how it impacts the long-term stability and scarcity of the currency. Given the potential inflationary pressures in traditional fiat currencies, doesn't a hard cap on the total supply of bitcoins ensure its value remains stable over time? Additionally, how does this limit factor into the mining process and the distribution of rewards among miners?
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6 answers
ShintoBlessing
Sun Jul 14 2024
The 21 million Bitcoin limit is often explained through the lens of the money supply replacement theory. This theory posits that Bitcoin's capped supply serves as a replacement for traditional fiat currencies, which are prone to inflationary pressures.
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DongdaemunTrendsetter
Sun Jul 14 2024
Another perspective on the limit suggests that it was mathematically extrapolated from Bitcoin's fundamental operating parameters. The creators of Bitcoin likely conducted extensive calculations and simulations to arrive at the 21 million figure.
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Daniele
Sun Jul 14 2024
Bitcoin, often abbreviated as BTC, was designed with a finite supply as a core principle. This finite supply was meant to mimic precious metals like gold and silver, which have limited availability and are often considered as stores of value.
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CloudlitWonder
Sat Jul 13 2024
The finite supply of Bitcoin ensures that its scarcity remains intact over time. As more and more Bitcoins are mined and brought into circulation, the difficulty of mining new coins increases, eventually leading to a cap on the total supply.
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HanRiverVisionaryWaveWatcher
Sat Jul 13 2024
BTCC, a UK-based cryptocurrency exchange, offers a range of services that cater to the needs of Bitcoin enthusiasts and traders. Among these services are spot trading, which allows users to buy and sell Bitcoin at the current market price.
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