What is the supply of Bitcoin and how does it affect its value?

3 answers

• May 14, 2022 · 3 years ago
  The supply of Bitcoin refers to the total number of coins that will ever exist. It is limited to 21 million coins, which creates scarcity and drives up the value. As the demand for Bitcoin increases, and the supply remains fixed, the price tends to rise. This is due to the basic economic principle of supply and demand. So, the limited supply of Bitcoin plays a crucial role in determining its value.
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• May 14, 2022 · 3 years ago
  The supply of Bitcoin is controlled by its underlying technology, known as blockchain. The blockchain ensures that new Bitcoins are created at a predictable rate through a process called mining. Miners use powerful computers to solve complex mathematical problems, and in return, they are rewarded with newly minted Bitcoins. This process helps maintain the integrity of the network and ensures a steady supply of new coins. The rate at which new Bitcoins are created halves approximately every four years, which further contributes to the scarcity and value of Bitcoin.
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• May 14, 2022 · 3 years ago
  The supply of Bitcoin is a fundamental aspect of its value proposition. Unlike traditional fiat currencies, which can be printed or created at will by central banks, Bitcoin has a fixed supply. This limited supply makes Bitcoin resistant to inflation and ensures that its value cannot be easily manipulated by any central authority. Additionally, the decentralized nature of Bitcoin and its limited supply make it an attractive store of value for individuals seeking an alternative to traditional financial systems.
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