Bitcoin’s 21 Million Limit: Why Is There a Cap?
One of Bitcoin’s defining characteristics is its fixed supply of 21 million coins. Unlike traditional currencies, which central banks can print indefinitely, Bitcoin's total supply is capped, meaning no more than 21 million bitcoins will ever exist. This scarcity was intentionally designed by Bitcoin's creator, Satoshi Nakamoto, to mimic the properties of precious metals like gold, which are limited in quantity.
This fixed supply makes Bitcoin unique among digital currencies and is a key reason why some investors view it as “digital gold.” By controlling the supply, Bitcoin's design aims to counter inflation and protect the currency’s value over time. The 21 million cap is expected to be reached around the year 2140, after which no new bitcoins will be mined, and miners will only earn transaction fees.
Did You Know? Satoshi Nakamoto never publicly explained why the number 21 million was chosen, leaving the exact reasoning behind this cap a fascinating mystery in the Bitcoin community.
Posted on November 9, 2024