Why is the maximum number of bitcoins limited to 21 million?

5 answers

• Tillman KarlssonFeb 16, 2024 · a year ago
  The maximum number of bitcoins being limited to 21 million is a fundamental aspect of the Bitcoin protocol. This limit was set by Bitcoin's creator, Satoshi Nakamoto, as a way to create scarcity and ensure that Bitcoin remains a deflationary currency. By limiting the supply, it prevents inflation and maintains the value of Bitcoin over time. This scarcity also adds to the appeal of Bitcoin as an investment, as it creates a sense of rarity and exclusivity.
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• Jennell SzambFeb 06, 2024 · a year ago
  The decision to limit the maximum number of bitcoins to 21 million was made to mimic the scarcity of precious metals like gold. Just like gold, which has a finite supply, Bitcoin's limited supply makes it a valuable and sought-after asset. This scarcity is one of the factors that contribute to Bitcoin's store of value and its potential to act as a hedge against inflation. By capping the supply, Bitcoin becomes a deflationary currency, which means that over time, the value of each bitcoin may increase.
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• SAHIL KASANAJan 27, 2025 · 5 months ago
  The maximum number of bitcoins being limited to 21 million is a design choice that ensures the long-term sustainability of the Bitcoin network. By having a fixed supply, it prevents the possibility of excessive inflation or devaluation. Additionally, this limit also provides an incentive for miners to secure the network through the process of mining. As the block rewards decrease over time, miners will rely more on transaction fees, which helps to maintain the security and integrity of the Bitcoin network.
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• Naqi AbbasJun 30, 2024 · a year ago
  The maximum supply of 21 million bitcoins is a feature that distinguishes Bitcoin from other cryptocurrencies. While some cryptocurrencies have unlimited or ever-increasing supplies, Bitcoin's limited supply adds to its credibility and stability. This limit also creates a predictable and transparent monetary policy, as everyone knows in advance how many bitcoins will ever be in circulation. This predictability is crucial for investors and businesses who want to plan for the future.
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• Cod LinDec 06, 2023 · 2 years ago
  As an expert at BYDFi, I can tell you that the maximum number of bitcoins being limited to 21 million is a key aspect of Bitcoin's design. This limit ensures that Bitcoin remains a scarce and valuable asset, which is essential for its long-term success. By capping the supply, Bitcoin avoids the pitfalls of inflation and provides a reliable store of value. This is why Bitcoin has gained so much popularity and continues to be a leading cryptocurrency in the market.
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