One more completely useless article which is asking questions to which the creator himself gave the answer, but this is clearly not enough to prevent so-called journalists from writing about such things, and also OP to promoting his site or site he is working for.
jseverson is posted Satoshi answer to this question, and any discussion on this topic is completely unnecessary.
Topic: Why Did Satoshi Nakamoto Choose 21M as Bitcoin’s Maximum Supply? - page 2. (Read 453 times)
December 04, 2019, 05:46:26 AM
December 04, 2019, 04:51:50 AM
21 Million is listed to sucker the mathematically challenged, into thinking bitcoin is scarce.
Had Satoshi limited the smallest denomination to 1 bitcoin, then 21 million would be accurate.
Had Satoshi limited the smallest denomination to ¼ bitcoin, then the supply would be 84 million.
But he made the smallest denomination .00000001 .
That means the bitcoin supply is actually 2.1 Quadrillion .
Plus others are talking about increasing even further below the 8th decimal place,
LN is moving to 12th decimal place, so they are inflating the supply, with the pretense the supply is limited.
Had Satoshi limited the smallest denomination to 1 bitcoin, then 21 million would be accurate.
Had Satoshi limited the smallest denomination to ¼ bitcoin, then the supply would be 84 million.
But he made the smallest denomination .00000001 .
That means the bitcoin supply is actually 2.1 Quadrillion .
Plus others are talking about increasing even further below the 8th decimal place,
LN is moving to 12th decimal place, so they are inflating the supply, with the pretense the supply is limited.
I never stop to think about in satoshis, and you're totally right, the amount of BTC is not SO HUGE, with 21millions, a lot of them lost (unavailable due to lost keys), but if you think in satoshis we have a good number, only determined by the price
December 04, 2019, 04:02:55 AM
If we want to take Satoshi's words for it:
So yeah, there are a lot of theories, and some may actually convenientrly make sense, but at the end of the day Satoshi himself said it was an educated guess.
My choice for the number of coins and distribution schedule was an educated guess. It was a difficult choice, because once the network is going it’s locked in and we’re stuck with it. I wanted to pick something that would make prices similar to existing currencies, but without knowing the future, that’s very hard. I ended up picking something in the middle. If Bitcoin remains a small niche, it’ll be worth less per unit than existing currencies. If you imagine it being used for some fraction of world commerce, then there’s only going to be 21 million coins for the whole world, so it would be worth much more per unit. Values are 64-bit integers with 8 decimal places, so 1 coin is represented internally as 100000000. There’s plenty of granularity if typical prices become small. For example, if 0.001 is worth 1 Euro, then it might be easier to change where the decimal point is displayed, so if you had 1 Bitcoin it’s now displayed as 1000, and 0.001 is displayed as 1.
So yeah, there are a lot of theories, and some may actually convenientrly make sense, but at the end of the day Satoshi himself said it was an educated guess.
December 04, 2019, 02:14:00 AM
If we talk about satoshi nakamoto then we all agree he is a genius who can create something useful for the future, which is bitcoin.
Looking at satoshi is genius, it is clear that he will not arbitrarily choose 21M as the maximum supply of bitcoin He must have his own
calculations as to why it must be 21M, only he knows the reason. It is very difficult for all of us to guess it. But actually than we are
dizzy thinking about it that clearly will never get the right answer, except satoshi himself who explained it to us all. We better focus on
thinking about something productive, like think of the right strategy to make a profit in the crypto world with bad market conditions like today.
Looking at satoshi is genius, it is clear that he will not arbitrarily choose 21M as the maximum supply of bitcoin He must have his own
calculations as to why it must be 21M, only he knows the reason. It is very difficult for all of us to guess it. But actually than we are
dizzy thinking about it that clearly will never get the right answer, except satoshi himself who explained it to us all. We better focus on
thinking about something productive, like think of the right strategy to make a profit in the crypto world with bad market conditions like today.
Actually he did arbitrarily choose it. He admitted it here on this forum before (too lazy to look for it). It was not a totally random number for sure, but he didn't give it tooo much thought. The system behind bitcoin itself was already complex enough that it should not have mattered.
And for me, I still think 21 or 42 or 11 million would not have made such a big difference, because 8 decimals.
December 04, 2019, 01:39:17 AM
he could have counted the number of world population divided by some existing bitcoin users later, thus creating a number of 21 million, no one knew about it, but whatever he created satoshi knew the need for bitcoin could be owned by everyone
December 04, 2019, 01:27:46 AM
I guess he factored in the world's population. He believed 21 millions is enough for billions?
The idea is to encourage scarcity and deflation. The creators of Bitcoin understood what sound money should be. They imitated gold scarcity I guess. It needs to be both Medium of exchange and Store of Value.
Sound money also has to be long-lasting, valuable, scarce, deflationary, divisible, hard to counterfeit, etc
The idea is to encourage scarcity and deflation. The creators of Bitcoin understood what sound money should be. They imitated gold scarcity I guess. It needs to be both Medium of exchange and Store of Value.
Sound money also has to be long-lasting, valuable, scarce, deflationary, divisible, hard to counterfeit, etc
December 04, 2019, 01:19:55 AM
Considering the population of the world, I feel the finite supply of bitcoin should have been somewhere around 500M or 1B BTC, this could have still been expensive and have a huge demand without any rival. Well, he was a genius and has his own reason best know to him. As long as it has a definite supply, then it's okay.
December 04, 2019, 12:45:04 AM
No one knows the exact reason why Satoshi chose 21 million as a total bitcoin supply, maybe 21 million has a certain meaning, logically the coins which have a small supply of prices will be expensive, but that does not guarantee, there is also altcoin which has a small supply but no value.
The number's not arbitrary. it's the mathematical result of Bitcoin's emission schedule. he picked round numbers for block times, block halvings, and satoshi divisibility. 10 minute block times, 4-year block halvings, 8 decimals of divisibility. Do the math and that means the halvings occur every 210,000 blocks, and can only happen so many times before we're halving "down from" 1 satoshi. At that point, since partial satoshis don't exist on the blockchain, it just stops the block reward altogether. therefore 21 million is a result of choosing certain values for block times, block halvings, and satoshi divisibility, and those values happened to be rather easily understandable, round numbers. December 04, 2019, 12:17:29 AM
How did Satoshi Nakamura come up with 21 million, for his (their?) limit to bitcoin?
Satoshi Nakamoto settled on a target time of 10 minutes per block with an initial subsidy of 50 BTC set to halve once every 4 years.
4 years / 10 minutes ≈ 210 000
50 + 25 + 12.5 + 6.25 + ... = 100
210 000 * 100 = 21 million
50 + 25 + 12.5 + 6.25 + ... = 100
210 000 * 100 = 21 million
So, the question could be why did he chose 50. Why not 100 or any other number. 4 years too could be arguably unique. But there are several reasons why 4 years and 10 minutes fit.
December 03, 2019, 11:55:03 PM
Maybe you guys should see this, and old thread (2015) but worth reading.
Why 21 million bitcoins? Why was ~that~ number chosen?.
Why 21 million bitcoins? Why was ~that~ number chosen?.
December 03, 2019, 11:52:41 PM
I did check on the internet, different theories, and the most informational that I found is in Quora.
https://www.quora.com/Why-do-we-only-have-21-million-Bitcoins#
The idea of having a finite supply makes it more valuable, and knowing the limit makes people feel FOMO and maybe increasing its value even more, so in my POV, having different amounts of supply, 21M, 22M, 50M, etc. As long as you know that it's finite, it has the same effect. I would say the same with how long it would be to mine. But still, in terms of max supply, it is worth it to have that and prevent additional production of coins. Suitable for the economy and transparent, in a way.
https://www.quora.com/Why-do-we-only-have-21-million-Bitcoins#
The idea of having a finite supply makes it more valuable, and knowing the limit makes people feel FOMO and maybe increasing its value even more, so in my POV, having different amounts of supply, 21M, 22M, 50M, etc. As long as you know that it's finite, it has the same effect. I would say the same with how long it would be to mine. But still, in terms of max supply, it is worth it to have that and prevent additional production of coins. Suitable for the economy and transparent, in a way.
December 03, 2019, 11:30:33 PM
We all know that every single coin or token has their own benchmark for a certain of reasons. But for me, lower supply means huge demand for that coin or token.
Define low supply?210K bitcoins could be low supply compared to 21 Million... 210 million could also be low supply compared to 21 Billion bitcoin. What am trying to say is low supply of BTC has nothing to do with huge demand. We have had coins have a much lower supply but still they are worthless to this date.
December 03, 2019, 11:06:27 PM
For a total supply of 21 million BTC, it gives them the advantage to be on a huge demand for individuals, companies, startups, banks (who embraces crypto and blockchain) and institutions.
well you have answered your question already and i think this is the most appropriate reason why did satoshi chooses 21 million instead of much more or lessen,but what ever his intention is?the important thing is the mining is not that easy to dig the total supply.If you have your own reason or opinion why Satoshi Nakamoto chooses 21 million as its benchmark, kindly share it here. Thanks!
December 03, 2019, 10:56:19 PM
He might have do his calculations and averaged out current monetary system's supply, and also decided the smallest amount (unit) available to somehow match the need of a payment system that could handle smallest to large sums of transactions, because that's what he envisioned it for (an alternative way of payment). And as we can see, 1 satoshi could handle even smallest USD cents, and even though it's too small of an amount, it could change depending on how USD/BTC price trades, which I can consider as future-proofing.
December 03, 2019, 10:22:42 PM
If we talk about satoshi nakamoto then we all agree he is a genius who can create something useful for the future, which is bitcoin.
Looking at satoshi is genius, it is clear that he will not arbitrarily choose 21M as the maximum supply of bitcoin He must have his own
calculations as to why it must be 21M, only he knows the reason. It is very difficult for all of us to guess it. But actually than we are
dizzy thinking about it that clearly will never get the right answer, except satoshi himself who explained it to us all. We better focus on
thinking about something productive, like think of the right strategy to make a profit in the crypto world with bad market conditions like today.
Looking at satoshi is genius, it is clear that he will not arbitrarily choose 21M as the maximum supply of bitcoin He must have his own
calculations as to why it must be 21M, only he knows the reason. It is very difficult for all of us to guess it. But actually than we are
dizzy thinking about it that clearly will never get the right answer, except satoshi himself who explained it to us all. We better focus on
thinking about something productive, like think of the right strategy to make a profit in the crypto world with bad market conditions like today.
December 03, 2019, 09:44:44 PM
No one knows the exact reason why Satoshi chose 21 million as a total bitcoin supply, maybe 21 million has a certain meaning, logically the coins which have a small supply of prices will be expensive, but that does not guarantee, there is also altcoin which has a small supply but no value.
December 03, 2019, 09:17:29 PM
I seriously doubt there is any hidden meaning. Maybe just whimsy or a personal lucky number.
...or he's a big fan of blackjack
...or he's a big fan of blackjack
December 03, 2019, 08:57:07 PM
Bitcoin’s maximum supply was set at 21M on day one by Satoshi Nakamoto. What was his reasoning for this benchmark?
Bitcoin is famous for being a deflationary currency. Its total circulating supply is capped at 21M and can never be altered. Although many have discussed the reasons for instituting a maximum cap, few know about why Satoshi chose 21M as the benchmark.
Source link here
We all know that every single coin or token has their own benchmark for a certain of reasons. But for me, lower supply means huge demand for that coin or token.
But the almighty Bitcoin? Satoshi has his own reasons too.
For a total supply of 21 million BTC, it gives them the advantage to be on a huge demand for individuals, companies, startups, banks (who embraces crypto and blockchain) and institutions.
If you have your own reason or opinion why Satoshi Nakamoto chooses 21 million as its benchmark, kindly share it here. Thanks!
Bitcoin is famous for being a deflationary currency. Its total circulating supply is capped at 21M and can never be altered. Although many have discussed the reasons for instituting a maximum cap, few know about why Satoshi chose 21M as the benchmark.
Source link here
We all know that every single coin or token has their own benchmark for a certain of reasons. But for me, lower supply means huge demand for that coin or token.
But the almighty Bitcoin? Satoshi has his own reasons too.
For a total supply of 21 million BTC, it gives them the advantage to be on a huge demand for individuals, companies, startups, banks (who embraces crypto and blockchain) and institutions.
If you have your own reason or opinion why Satoshi Nakamoto chooses 21 million as its benchmark, kindly share it here. Thanks!
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