👑Bitcoin Facts👑
The largest asset manager, BlackRock, is challenging the certainty of Bitcoin’s 21 million cap.
🟢 Recently, BlackRock stated in a published video: “There is no guarantee that the 21 million Bitcoin supply cap will not change.”
🟢 Why did they say that?
Because Bitcoin has no central authority, BlackRock has no right to enact or guarantee the $21 million cap.
🟢 Does this mean there will be more than 21 million Bitcoins?
The answer is that no one can guarantee how much Bitcoin will eventually exist.
🟢 So how do people get to the 21 million number?
It comes from pure mathematics.
Satoshi Nakamoto started mining Bitcoin, and every 10 minutes, a new block is added to the blockchain.
In each new block, all transactions that have occurred on the Bitcoin network over the last ten minutes are recorded. The computer that solves the mathematical puzzle set by the Bitcoin network is rewarded with newly minted Bitcoin.
In the early days of 2009, when Satoshi started mining, a new block was added to the network to reward miners with 50 bitcoins. There is a halving mechanism built into the system.
What does that mean?
Every 210,000 blocks, the block reward is halved.
For example, at block 210,000, the reward dropped to 25 BTC. Similarly, at block 420,000, miners started receiving 12.5 BTC. Currently, miners earn 3.125 BTC per block.
This process continues until the year 2140, when the reward reaches zero and no new coins will be minted. This is how the 21 million bitcoin limit is mathematically encoded into the system.
If BlackRock wanted to increase the supply to, say, 50 million bitcoins, it would need to develop the bitcoin software.
In simple terms, they would need to change the Bitcoin Core software code to allow for 50 million coins and upload this new version of Bitcoin to the network.
This will create two chains: the original Bitcoin chain and the new version.
To create the new chain, all node operators, miners, users, developers, and exchanges will need to adopt the updated version. However, Bitcoin users, miners, node operators (who verify new blocks), exchanges, and developers will not support such a change because it would devalue their coins. This is not a new scenario.
Bitcoin Satoshi Vision (BSV) and Bitcoin Cash (BCH) are examples of failed forks.
Likewise, any new version of the Bitcoin network that attempts to change the 21 million limit will also fail.
Bitcoin is the most dynamic, flexible, seamless, and transparent network humanity has ever invented.
While there is no absolute guarantee that Bitcoin will remain at the 21 million limit (because no one has the authority to enforce it), that is precisely the beauty of Bitcoin.