Why is Bitcoin designed to be scarce? 🪙🚀
1/ Limited total supply
#Bitcoin has a maximum supply of 21 million coins.
👉 This is a fixed rule programmed into the protocol by Bitcoin creator - Satoshi Nakamoto.
⛔ No additional Bitcoin can be created beyond this number.
2/ Halving - Reducing mining rewards
Every 210,000 blocks (about 4 years), the reward for mining a Bitcoin block is halved.
⏳ This reduces the amount of new Bitcoin introduced into circulation, increasing its scarcity over time.
3/ Bitcoin lost forever
Not all 21 million Bitcoins are in circulation.
📉 A portion of Bitcoin is permanently lost due to:
Forgot wallet password
Lost hardware wallet
Other accidents
⛔ This reduces the actual total supply, further increasing scarcity
4/ Blockchain technology
Blockchain ensures that:
🔒 Transactions are recorded publicly, transparently, and cannot be changed.
👉 No one can alter the rules or increase the total supply of Bitcoin.
5/ Demand and trust
Scarcity becomes more apparent when:
📈 Market demand is increasing.
🛡️ Users trust and hoard Bitcoin with the expectation that its value will continue to rise in the future.
Conclusion
Thanks to the above factors, Bitcoin possesses inherent scarcity, making it an attractive asset in the eyes of investors. 💎
What do you think about Bitcoin's scarcity? Please share your thoughts! 👇
