How does the number of bitcoins affect their value?

3 answers

• Nov 28, 2021 · 3 years ago
  The number of bitcoins in circulation plays a significant role in determining their value. As the supply of bitcoins is limited to 21 million, the scarcity factor drives up the price. This limited supply combined with increasing demand creates a situation where the value of bitcoins tends to rise over time. It's similar to how gold gains value due to its scarcity. So, the fewer bitcoins there are, the higher their value can potentially be.
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• Nov 28, 2021 · 3 years ago
  When it comes to the value of bitcoins, the number of coins in circulation is a crucial factor. With a limited supply of 21 million bitcoins, the scarcity of this digital currency drives up its value. As more people become interested in owning bitcoins, the demand increases, which further contributes to the rise in value. This relationship between supply and demand is a fundamental principle of economics, and it applies to cryptocurrencies as well.
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• Nov 28, 2021 · 3 years ago
  The number of bitcoins available directly affects their value. As the supply of bitcoins is fixed at 21 million, the scarcity factor drives up the price. This scarcity is a key feature that distinguishes bitcoins from traditional currencies. Unlike fiat currencies, which can be printed in unlimited quantities, bitcoins have a finite supply. This limited supply, combined with increasing demand, creates a situation where the value of bitcoins tends to appreciate over time. So, as the number of bitcoins in circulation decreases, their value has the potential to increase.
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