Why is Bitcoin limited (why is Bitcoin not infinite)

08/05/2023 04:21 • Metaverse Matters • 54 views

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Why Bitcoin is limited, original author: William M. Peaster

There are two reasons why Bitcoin is limited, the first is its limited scope of use. The second is that it has extremely strong speculation. The third reason is that it is controlled by a specific group (not just for a certain individual or organization), which can manipulate any price and behavior. These factors make Bitcoin more scarce, costly, and accessible than gold, and over time, such digital currencies may become mainstream payment methods. And why is Bitcoin infinite? Let’s take a look at what makes Bitcoin so “limited” One of the main reasons that

Bitcoin is limited is that it does not have enough supply to support its value storage capacity, which makes it difficult for them to compete with the Wet market. However, there are some limitations in the Bitcoin network, such as the excessive number of transactions that cannot economically meet demand. Therefore, if we want to conduct large-scale decentralized mining activities compared to Bitcoin and provide people with a safe way to purchase Bitcoin, we must establish a reliable security reserve system to ensure security, but this situation cannot be completely eliminated In order to solve this problem, most people believe that only 21 million BTCs can be mined to maintain their operation. However, because many people believe that Bitcoin will not generate revenue, they begin to transfer their Bitcoin to other addresses to earn profits, as their wallets regularly receive a large amount of newly issued money and send a batch of new tokens to the exchange every few months until all newly minted Bitcoins are reset to zero. So the question arises, since Bitcoin already has sufficient supply support, why can the price of Bitcoin only be measured in very small percentages? Below, we will elaborate on how Bitcoin maintains a stable market value. What is the total supply of Bitcoin? Bitcoin is currently small, but there is huge room for growth. As we mentioned in our previous article ‘Bitcoin Halving Affects the Prospects of the Next Decade’, when you see more Bitcoin appearing in the market, there will be a lot of debate about Bitcoin. Although many people criticize the existence of Bitcoin to allow users to easily sell it and earn more returns, the discussion in this article still focuses on one viewpoint – the “upper limit of Bitcoin supply”. In fact, even in the current bull bear cycle, Bitcoin shows no signs of reducing supply, but rather an increasingly popular form of asset. For Bitcoin, this is an inevitable thing. Although the supply ceiling of Bitcoin is a feasible solution, according to the Bitcoin community, the maximum supply of Bitcoin only accounts for about 1% of the total. In other words, in the long run, Bitcoin may still continue to grow and will continue to do so. Bitcoin will never reach $100000. “Bitcoin holders should realize,” I know, if you have one Bitcoin, why is Bitcoin not infinite? “? Because its supply limit is limited and unchangeable, it can be used to pay for anything – without the need for other asset support (such as gold) or fiat currency support – but if it needs to do so, it must consume a large amount of energy, resulting in its inability to circulate; In addition, another reason is that due to the anonymity and transparency of blockchain technology itself, the price of Bitcoin fluctuates greatly. Moreover, even if there are issues such as theft, hacker attacks, manipulation, and fraud that have been running on the network for more than five years, the price may fluctuate significantly.

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Why is Bitcoin limited (why is Bitcoin not infinite)

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