I read an article recently that gave the number of bitcoins in circulation to be 16.7miion. The article also stated that, bitcoins are being regulated not to exceed 21million in circulation.
What is the reason behind this measure to limit circulating bitcoins to 21 million where as the world’s population is 7.3 billion?
Will many individuals not be denied easy access to earn and invest in bitcoin?
What is the reason behind this measure to limit circulating bitcoins to 21 million where as the world’s population is 7.3 billion?
Will many individuals not be denied easy access to earn and invest in bitcoin?
Bitcoin is available in small denominations like 0.00000001 which is represented as satoshi. So one satoshi means one hundred millionth of one bitcoin. So distribution is not a problem here. The limitation is put in place just to control the supply. Whenever one asset is available in abundance, mankind doesn't realize its value. Just take an example of oxygen. It's available in abundance so we are not yet realizing its value.
So to create a value chain, it has be limited in supply. I belive that is the only consideration behind its 21 million cap. This limitation has paved the way to create value for bitcoin by simple demand supply rule.
