A quick question. If bitcoin is capped at 21 million tokens, what happens when it gets scarce in the context that it is the globally accepted currency of exchange?

Answer:

If Bitcoin becomes globally accepted as the primary currency and the 21 million cap is reached (which is projected to happen around the year 2140), scarcity will play a major role in how the system operates. Here's what happens:

1. Divisibility handles scarcity:

Bitcoin is divisible up to 8 decimal places, meaning each bitcoin can be split into 100 million satoshis. So even if all 21 million are mined, there's enough granularity (2.1 quadrillion satoshis) to support massive global use.

2. Value increases with scarcity:

As demand grows but supply stays fixed, each bitcoin becomes more valuable. One satoshi might be worth a lot if Bitcoin becomes the dominant currency.

3. Deflationary pressure:

A fixed supply encourages saving because your money gains value over time—unlike inflationary fiat currencies. But too much deflation could discourage spending, which can slow economic activity.

4. Increased use of layer-2 solutions:

Scalability and microtransactions would be handled by protocols like the Lightning Network, allowing near-instant, low-cost payments using satoshis, while still settling in Bitcoin.

5. Shift in miner incentives:

Once block rewards end, miners will be incentivized solely through transaction fees. If Bitcoin is globally adopted, the volume of transactions and the value of fees should be enough to keep miners secure and the network running.

6. Hoarding and liquidity concerns:

People might hoard bitcoin due to its appreciating nature, reducing circulation. This could be mitigated by widespread financial products (like BTC-backed loans or derivatives) to increase liquidity without selling the BTC.

So while the cap could lead to high scarcity, Bitcoin’s design and economic principles are meant to handle this scenario with divisibility, network incentives, and layered infrastructure.

#Bitcoin #Scarcity #BTC #Cryptoeconomics #Nostr

and sell it not

GM ☀️

The sun’s up, the mempool’s clear, and the future’s ours to build.

Today’s a blank canvas—what are you painting on it?

They told you money was supposed to be controlled.

They told you privacy was a privilege.

They told you freedom was negotiable.

Bitcoin is the quiet revolution that says: No more

What are you saying 'no' to?

Here’s a hard truth:

The system isn’t broken—it’s working exactly as designed.

Bitcoin isn’t just a fix.

It’s a way to opt out entirely.

And that’s why it scares them.

Remember when you first 'got' Bitcoin?

That moment when it clicked—when you realized this wasn’t just money, but a tool for liberation.

For me, it was like seeing the Matrix for the first time.

What was your 'aha' moment? ⚡

feels empty

lol

I decoded that. my emoji is also saying something else. find out

SECRET MESSAGE HERE

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alright 👍

how do y'all get linked up [ followers] here?

if not for the grok watermark I nearly believed it