What are the reasons behind the decision to have only 21 million bitcoins?

3 answers

• Dec 17, 2021 · 3 years ago
  The decision to have only 21 million bitcoins was made to create scarcity and ensure the value of the cryptocurrency. By limiting the supply, it prevents inflation and maintains the purchasing power of bitcoin. This scarcity also makes bitcoin a deflationary asset, as the supply will decrease over time due to lost or unrecoverable coins. Additionally, the limited supply encourages adoption and use of bitcoin as a medium of exchange and store of value.
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• Dec 17, 2021 · 3 years ago
  The decision to cap the total number of bitcoins at 21 million was a deliberate design choice by the creator of bitcoin, Satoshi Nakamoto. It was intended to mimic the scarcity of precious metals like gold and create a digital form of value that cannot be easily replicated or inflated. This limited supply also adds to the overall security and stability of the bitcoin network, as it prevents excessive mining and ensures a more controlled and predictable issuance of new coins.
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• Dec 17, 2021 · 3 years ago
  The decision to have only 21 million bitcoins was a strategic move to differentiate bitcoin from traditional fiat currencies. By having a limited supply, bitcoin is not subject to the same risks of inflation and government manipulation that fiat currencies face. This makes it an attractive alternative for individuals and businesses looking for a decentralized and secure form of digital money. The scarcity of bitcoins also creates a sense of exclusivity and value, driving demand and adoption in the cryptocurrency market.
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