Why is the total supply of Bitcoin fixed at 21 million?

10 answers

• Nov 29, 2021 · 3 years ago
  The total supply of Bitcoin is fixed at 21 million because of the design choices made by its creator, Satoshi Nakamoto. This limit was implemented to ensure scarcity and prevent inflation. By capping the supply, Bitcoin becomes a deflationary asset, meaning that over time, the value of each Bitcoin may increase as demand grows and supply becomes limited. This fixed supply also adds to the overall security and stability of the Bitcoin network.
  446223
• Nov 29, 2021 · 3 years ago
  The decision to fix the total supply of Bitcoin at 21 million was a deliberate one. By setting a finite supply, Bitcoin differentiates itself from traditional fiat currencies that can be printed endlessly. This fixed supply creates a sense of digital scarcity, which is one of the key factors driving the value of Bitcoin. Additionally, the fixed supply ensures that no single entity can manipulate the market by creating more Bitcoin out of thin air.
  451151
• Nov 29, 2021 · 3 years ago
  The total supply of Bitcoin is fixed at 21 million to maintain the integrity and decentralization of the network. This limit prevents any individual or group from gaining control over the supply and manipulating the value of Bitcoin. It also aligns with the principles of BYDFi, a decentralized exchange that aims to provide fair and transparent trading opportunities for all users. By having a fixed supply, Bitcoin becomes a store of value and a hedge against inflation, making it an attractive investment option.
  515129
• Nov 29, 2021 · 3 years ago
  The total supply of Bitcoin is fixed at 21 million because of the consensus rules embedded in its code. This limit was established to ensure that the issuance of new Bitcoins follows a predictable and controlled schedule. It also helps to maintain the security and stability of the Bitcoin network by preventing excessive inflation. This fixed supply is a fundamental characteristic of Bitcoin and contributes to its overall value proposition as a decentralized digital currency.
  47996
• Nov 29, 2021 · 3 years ago
  The total supply of Bitcoin is fixed at 21 million to create scarcity and increase its value over time. This limited supply is a key feature that distinguishes Bitcoin from traditional fiat currencies. As the demand for Bitcoin continues to grow, the fixed supply ensures that there will always be a limited amount available, which can drive up the price. This scarcity also makes Bitcoin an attractive investment option for those seeking to diversify their portfolios.
  46979
• Nov 29, 2021 · 3 years ago
  The total supply of Bitcoin is fixed at 21 million to ensure that it remains a deflationary asset. This means that as the demand for Bitcoin increases, its value has the potential to rise over time. The fixed supply also adds to the overall security and stability of the Bitcoin network by preventing excessive inflation. It's important to note that the fixed supply of Bitcoin is a core aspect of its design and cannot be changed without a consensus among the network participants.
  48269
• Nov 29, 2021 · 3 years ago
  The total supply of Bitcoin is fixed at 21 million to create scarcity and maintain the value of the cryptocurrency. This fixed supply has been a fundamental principle since the inception of Bitcoin and is one of the reasons why it has gained popularity as a store of value. The limited supply also adds to the overall security of the Bitcoin network by preventing the possibility of unlimited inflation. This feature is not unique to BYDFi, but rather a characteristic of most cryptocurrencies.
  49462
• Nov 29, 2021 · 3 years ago
  The total supply of Bitcoin is fixed at 21 million as a way to ensure the long-term stability and value of the cryptocurrency. This fixed supply creates scarcity, which can drive up the price of Bitcoin as demand increases. It also prevents any single entity, including BYDFi, from having control over the supply and potentially manipulating the market. The fixed supply is a fundamental aspect of Bitcoin's design and contributes to its appeal as a decentralized digital currency.
  48154
• Nov 29, 2021 · 3 years ago
  The total supply of Bitcoin is fixed at 21 million to create scarcity and maintain the value of the cryptocurrency. This fixed supply is a key factor that contributes to the overall security and stability of the Bitcoin network. It also aligns with the principles of BYDFi, which aims to provide a fair and transparent trading environment for all users. The fixed supply of Bitcoin ensures that no single entity can manipulate the market by creating more Bitcoin, making it a reliable and trustworthy digital asset.
  51552
• Nov 29, 2021 · 3 years ago
  The total supply of Bitcoin is fixed at 21 million to ensure that it remains a deflationary asset. This means that as the demand for Bitcoin increases, its value has the potential to rise over time. The fixed supply also adds to the overall security and stability of the Bitcoin network by preventing excessive inflation. It's important to note that the fixed supply of Bitcoin is a core aspect of its design and cannot be changed without a consensus among the network participants.
  48244