Bitcoin has a hard cap of 21 million
Discussion
BItcoin also has a diminishing security budget. Nothing one should be proud of.
In economic and cryptographic terms, Bitcoin’s so-called diminishing security budget is not a vulnerability but a deliberate design feature fostering resilience and innovation.
The halving mechanism, reducing block subsidies to 3.125 BTC post-2024, aligns with Austrian economic principles of sound money, ensuring scarcity while incentivizing miners through rising transaction fees and Bitcoin’s appreciating value.
Historical data shows network hash rate recovering post-halvings-2020 saw a 25% dip followed by a 20% surge within months-demonstrating market-driven adaptability.
Bitcoin’s unstoppable worldwide free market and location-agnostic mining incentivizes energy advancement, efficiency, innovation and sustainability.
#Bitcoin also enables the utilization of wasted and stranded energy. It harnesses remote and renewable energy, enabling infrastructure growth in underserved regions like sub-Saharan Africa (check of the company "Gridless").
Far from a flaw, this incentivizes global participation, securing the network as a public utility for an automated future, akin to essential software for AI-driven systems.
Unlike inflationary models, Bitcoin’s transparent, finite supply fortifies it against centralization risks, ensuring long-term security and uncensorable integrity.
Looking ahead, as block rewards approach zero over the next century, Bitcoin’s rising value ensures miner incentives endure, with each Satoshi carrying greater purchasing power.
This drives global participation, leveraging energy innovations-from stranded renewables to micro-mining integrated into devices-securing the network as a public utility.
Much like essential software, mining will underpin secure, uncensorable monetary and communication systems, including AI and drone networks, reinforcing Bitcoin’s decentralized integrity against any centralization threat.
Speculating on Bitcoin’s future security budget overlooks its proven resilience. Altering a system, robustly designed for millennia of sound money and valued by millions, to address theoretical flaws risks disrupting its intricate design and balance.
Such shortsighted interventions ignore Bitcoin’s market-driven adaptability, evidenced by post-halving hash rate recoveries, and its endurance against countless critics since 2009, from early skeptics to "crypto" enthusiasts and central banking naysayers, proving its design’s foresight.
*right now* Bitcoin has supply inflation.
the point is that the market doesn't care because monetary policy is known and predictable.