Bitcoin Scarcity 🧡🫡⚡️

Bitcoin's programmed scarcity is a core concept in its design and refers to the maximum limit of 21 million bitcoins that can ever be created/mined. This limit is hardcoded into the protocol and cannot be changed without unanimous consensus across the network.

Bitcoin uses a mechanism called the "halving" to control the issuance of new coins. Roughly every four years, the reward that miners receive for validating transactions and adding new blocks to the blockchain is cut in half. Initially, the reward was 50 bitcoins per block, but it has now decreased to 3.125 bitcoins, and it will continue to drop over time.

This gradual reduction in new supply, combined with growing demand, creates a scarcity dynamic that should increase Bitcoin’s value over time. Unlike traditional money, which central banks can issue without a fixed limit, Bitcoin is deflationary by nature, making it a store of value for those concerned about inflation.

In summary, Bitcoin’s programmed scarcity ensures that no more than 21 million bitcoins will ever exist, creating a limited supply and an economic dynamic that should lead to its value rising over time.

#Bitcoin 🧡🫡⚡️