BlackRock's Bitcoin video 'Supply Cap' statement sparks controversy.
According to (Cointelegraph) reports, the world's largest asset management company BlackRock released a 3-minute explanatory video about Bitcoin, in which a disclaimer sparked heated discussions in the crypto community. The statement mentioned: 'There is no guarantee that Bitcoin's supply cap of 21 million will not be changed.'
In the video, BlackRock explains that Bitcoin has a fixed supply of 21 million coins, and this hard-coded rule controls the supply and purchasing power, helping to avoid potential issues of currency overproduction, but the disclaimer presents other possibilities, causing a stir in the crypto community.
MicroStrategy founder Michael Saylor shared this video, attracting critics who questioned whether Bitcoin's scarcity can truly be changed.
Dashpay's Director of Business Development Joel Valenzuela bluntly stated:
'When the supply cap increases, people will say this has always been part of the plan. In 2024, can people still dare to say Bitcoin hasn't been hijacked?'
Image source: X BlackRock's Bitcoin video disclaimer states: There is no guarantee that Bitcoin's supply cap of 21 million coins will not be changed.
Can Bitcoin's supply cap of 21 million be changed?
Super Testnet, the developer of the Bitcoin virtual machine BitVM, stated that whether the Bitcoin supply cap can be changed depends on how the community defines 'Bitcoin.'
Theoretically, changing the supply cap requires consensus from multiple members of the Bitcoin community, including node operators, core developers, miners, and investors. Typically, a proposal is first put forward by developers to spark community discussions to understand where the consensus lies, and then the rule changes are implemented into the Bitcoin core code.
This change would lead to a Bitcoin hard fork, and the community needs to decide which new set of rules to adopt. If most node operators and miners begin to support the new fork, it will be reflected in the market share and hash power increase, and they will operate on this 'new' Bitcoin network.
Super Testnet pointed out: 'Setting a cap on inflation is the biggest feature of Bitcoin,' and cited Satoshi Nakamoto's Bitcoin white paper to state:
'Once this feature is removed, what you have is no longer Bitcoin, just like asking how to turn Bitcoin into PayPal.'
Relying solely on Bitcoin miners cannot facilitate a successful Bitcoin hard fork, as evidenced by the block size debate in 2016 and 2017.
Historical experience proves that even with 95% of miners supporting a hard fork, if consensus from the entire ecosystem cannot be achieved, such changes are impossible to realize. Even if changes do occur, they will not be the Bitcoin originally designed by Satoshi Nakamoto.
The decentralized value of Bitcoin is under threat.
The Bitcoin white paper was born during the 2008 financial crisis, and Satoshi Nakamoto's original intention was to create an electronic payment system that does not require intermediaries, not linked to any fiat currency or government, and setting a supply cap was intended to combat inflation.
However, as the industry continues to develop, Bitcoin is increasingly defined as digital gold, possessing value storage functions. With major national governments and large institutions actively intervening, the degree of decentralization is also increasingly questioned.
(Crypto City) previously reported that to cope with the ever-changing regulatory environment and the involvement of institutions and governments, Bitcoin seems to need to make compromise changes between ideals and reality.
Changing the core design of the supply cap will inevitably provoke strong controversy within the community and affect the long-standing reward mechanism model, even reversing the entire halving bull-bear cycle and other mainstream narratives. However, at present, the Bitcoin ecosystem has not taken this step but is developing towards expanding the application layer.
Further reading:
Distribution of holdings sparks heated discussions! Is Bitcoin still the people's currency? Or has it completely devolved into a capital game?
[Disclaimer] Markets are risky, and investments should be made cautiously. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article align with their specific situation. Invest at your own risk.
'Can the Bitcoin supply cap be changed? Industry players: This trick can change it, but it won't be Satoshi Nakamoto's Bitcoin.' This article was first published in 'Crypto City'.
