Topic: Bitcoin Supply limited to 21 Million (Read 194 times)
Yep, you are right that 21M is the choice of Satoshi Nakamoto. Not only Bitcoin, every coin has a controlled of supply. If it was not controlled of supply it will lost it market value and balance. The reason of king in crypto world, other coin also followed bitcoin's. There are some coin in the market who have less then 3 Million of supply. But those coin can't reach the price of bitcoin. I love and hopefully about BTC.
That is why 21038400 is the theoretical limit and we don’t want to go forever mining a millionth, a trillionth of a Satoshi. Actually (as for now) we cannot go less than 1 satoshi anyway. So the real number is just a little bit smaller than that, maybe 21038399.99999999 or 1 Satoshi away from the theoretical calculation.
Halving exactly every 4 years is not set-in-stone, it is to take place every 210,000 blocks, which should average to 4 years, but can be much sooner or later.
Your math is off (could be due to taking 4 years as a static value), total number of bitcoins will never cross 21 millions (under current protocol rules).
https://en.bitcoin.it/wiki/Controlled_supply
yes it's true that 21 million is the choice of Satoshi Nakamoto, and I think it's all just Satoshi Nakamoto who knows why it should amount to just that.
But the other coin also followed bitcoin's number but they've never succeeded, I think it is not the number of coin, I saw different coins with a supply of below 5M but it never compete the price of bitcoin, and also never increase its value, I think there is no co-incident of the 21M supply, it's the Bitcoin features matter most..
Nobody knows why the team pegged the total volume of bitcoin at 21 Million and it is only about 16 million that is in circulation. I think that what makes bitcoin thick because it is limited in supply and the demand is always there. I am interested in holding part of the 16 million that is in circulation. Bitcoin is a supper coin worth owning.
In the beginning, Satoshi Nakamoto offered 50 bitcoins for each block created and that development happened in every 10 minutes.
Since there are 1440 minutes (24×60) in every day, that means that 144 blocks were created so 144X50 = 7200 bitcoins per day, 4 years are 1461 days which include the leap one) and the total bitcoins for the 1st 4 years came out to be 1461 X 7200 = 10519200.
After that, it was decided that every 4 years henceforth would decrease the bitcoins awarded per block created to half of its original value, the total bitcoins are 10519200 *(1 + 1/2 + 1/4+1/8 + … +1/2^n) = 10519200 *2 = 21038400 (if we take approximate of 1+0.5+0.25+0.125+.. = 2 )
That is why 21038400 is the theoretical limit and we don’t want to go forever mining a millionth, a trillionth of a Satoshi. Actually (as for now) we cannot go less than 1 satoshi anyway. So the real number is just a little bit smaller than that, maybe 21038399.99999999 or 1 Satoshi away from the theoretical calculation.
I read somewhere
Since there are 1440 minutes (24×60) in every day, that means that 144 blocks were created so 144X50 = 7200 bitcoins per day, 4 years are 1461 days which include the leap one) and the total bitcoins for the 1st 4 years came out to be 1461 X 7200 = 10519200.
After that, it was decided that every 4 years henceforth would decrease the bitcoins awarded per block created to half of its original value, the total bitcoins are 10519200 *(1 + 1/2 + 1/4+1/8 + … +1/2^n) = 10519200 *2 = 21038400 (if we take approximate of 1+0.5+0.25+0.125+.. = 2 )
That is why 21038400 is the theoretical limit and we don’t want to go forever mining a millionth, a trillionth of a Satoshi. Actually (as for now) we cannot go less than 1 satoshi anyway. So the real number is just a little bit smaller than that, maybe 21038399.99999999 or 1 Satoshi away from the theoretical calculation.
I read somewhere
It's a matter of economic and mathematical opinion you can read this but it's not the words from Satoshi, so...
I remember this discussion, actually.
Finney, Satoshi, and I discussed how divisible a Bitcoin ought to be. Satoshi had already more or less decided on a 50-coin per block payout with halving every so often to add up to a 21M coin supply. Finney made the point that people should never need any currency division smaller than a US penny, and then somebody (I forget who) consulted some oracle somewhere like maybe Wikipedia and figured out what the entire world's M1 money supply at that time was.
We debated for a while about which measure of money Bitcoin most closely approximated; but M2, M3, and so on are all for debt-based currencies, so I agreed with Finney that M1 was probably the best measure.
21Million, times 10^8 subdivisions, meant that even if the whole word's money supply were replaced by the 21 million bitcoins the smallest unit (we weren't calling them Satoshis yet) would still be worth a bit less than a penny, so no matter what happened -- even if the entire economy of planet earth were measured in Bitcoin -- it would never inconvenience people by being too large a unit for convenience.
Finney, Satoshi, and I discussed how divisible a Bitcoin ought to be. Satoshi had already more or less decided on a 50-coin per block payout with halving every so often to add up to a 21M coin supply. Finney made the point that people should never need any currency division smaller than a US penny, and then somebody (I forget who) consulted some oracle somewhere like maybe Wikipedia and figured out what the entire world's M1 money supply at that time was.
We debated for a while about which measure of money Bitcoin most closely approximated; but M2, M3, and so on are all for debt-based currencies, so I agreed with Finney that M1 was probably the best measure.
21Million, times 10^8 subdivisions, meant that even if the whole word's money supply were replaced by the 21 million bitcoins the smallest unit (we weren't calling them Satoshis yet) would still be worth a bit less than a penny, so no matter what happened -- even if the entire economy of planet earth were measured in Bitcoin -- it would never inconvenience people by being too large a unit for convenience.
We all know total supply of bitcoin is 21 million but why Satoshi Nakamoto choose 21 million figure for total supply of bitcoin?
Jump to: