Why was the decision made to set the maximum supply of bitcoin at 21 million?

4 answers

• Reem HassanSep 21, 2023 · 2 years ago
  The decision to set the maximum supply of bitcoin at 21 million was primarily driven by the need to create scarcity and maintain the value of the cryptocurrency. By limiting the supply, bitcoin becomes a deflationary asset, meaning that over time, its value is expected to increase. This decision was also influenced by the desire to prevent inflation and ensure that bitcoin remains a decentralized currency.
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• Tiana JohnsonNov 17, 2023 · 2 years ago
  The decision to cap the maximum supply of bitcoin at 21 million was a deliberate move to mimic the scarcity of precious metals like gold. By creating a limited supply, bitcoin is designed to be a store of value and a hedge against traditional fiat currencies. This decision was made to provide a predictable and transparent monetary policy for bitcoin users and investors.
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• Gundersen BruhnMay 18, 2022 · 3 years ago
  The decision to set the maximum supply of bitcoin at 21 million was made by the anonymous creator of bitcoin, known as Satoshi Nakamoto. Nakamoto's vision was to create a digital currency that operates outside the control of central banks and governments. The limited supply ensures that bitcoin cannot be inflated or manipulated by any central authority, making it a truly decentralized and censorship-resistant form of money. This decision has contributed to the widespread adoption and success of bitcoin.
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• Kaneki KenJul 15, 2020 · 5 years ago
  As an expert in the cryptocurrency industry, I can say that the decision to set the maximum supply of bitcoin at 21 million has had a significant impact on the market. The scarcity of bitcoin has driven up its value over time, making it a highly sought-after asset. This decision has also led to the emergence of alternative cryptocurrencies, known as altcoins, which aim to address the limitations of bitcoin's supply. Overall, the decision to cap the maximum supply has played a crucial role in shaping the digital currency landscape.
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