Aug 28, · In a long piece on Bitcoin volatility at Coin Savage, a cryptocurrency news and analysis site, Parker Lewis recently wrote that “Bitcoin is valuable because it has a fixed supply and it is also volatile for the same reason. The fundamental demand driver for Bitcoin is in its scarcity.”. Dec 22, · Two key characteristics of bitcoin are limited supply and constrained supply growth. There are a fixed number of bitcoins in the world (21 million). The bitcoin world started with most of Author: Luke Lango. Bitcoin 's supply cap is one of its biggest selling points. Limiting the network to almost 21 million BTC, the cap makes Bitcoin a ‘deflationary’ currency. Naturally, people have been questioning whether it might be possible to remove this.
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But even if Bitcoin developers were to insert the removal of the cap into a new Bitcoin Core version, this doesn't necessarily mean that Bitcoin would have its cap removed. They may not see the removal of the supply cap as an improvement, and thus not move forward to run it.
In other words, even if the developers release a new version of Bitcoin without the supply cap, the people who actually run Bitcoin may refuse to use it. A fork into two separate cryptocurrencies would occur, and this leads CEO and co-founder of Bull Bitcoin , Francis Pouliot, to argue that the forked cryptocurrency without the 21 million supply cap would no longer be Bitcoin.
He tells Cryptonews. Read about it here. Home Exclusives Features. As it turns out, the parameters Satoshi set for this inevitably lead to the production of a maximum of 21 million BTC. The Bitcoin core code currently adjusts the mining difficulty to ensure that each new block is mined every 10 minutes on average, regardless of how much hash rate is pointed at the network. Based on this feature, a total of , blocks should be mined in each four-year cycle, after which the block reward is halved.
Editor's note: This article was first published in July It has since been updated. Read on the Decrypt App for the best experience. For the best experience, top crypto news at your fingertips and exclusive features download now.
News Technology. The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available. Sign in. Log into your account. Forgot your password?