The scarcity of Bitcoin is guaranteed by its code, which limits the total number of coins that can ever exist from "summary" of The Bitcoin Standard by Saifedean Ammous
Bitcoin's scarcity is a fundamental aspect of its design. This scarcity is not subject to human decision or manipulation but is ensured by the code that governs the cryptocurrency. The total number of bitcoins that can ever exist is limited by the rules embedded in the software. This limitation sets Bitcoin apart from traditional fiat currencies, which can be printed in unlimited quantities by central banks. By capping the total supply of bitcoins at 21 million, the code establishes a predictable issuance schedule. This fixed supply contrasts with the inflationary tendencies of fiat currencies, which lose value over time due to continuous money printing. The scarcity of Bitcoin is not based on trust in a central authority but is mathematically determined and publicly verifiable. The scarcity of Bitcoin is comparable to precious metals like gold, which have been valued for their limited supply throughout history. Just as gold cannot b...
Similar Posts
Social proof can sway opinions and actions
When we're unsure about what to do, we often look to others for cues. This phenomenon, known as social proof, can significantly...
Incentives play a crucial role in decisionmaking processes
Incentives are one of the key factors that influence how individuals make decisions in their daily lives. Whether it is choosin...
Develop good money habits
Developing good money habits is crucial for financial success in the long run. It is not about making a lot of money or having ...
The media can influence investor behavior
The media wields significant power when it comes to shaping the perceptions and actions of investors. Through various mediums s...
Its adoption is growing worldwide
The widespread acceptance of a monetary standard is an essential factor in determining its success. The increasing adoption of ...
Bitcoin offers a superior monetary system
Bitcoin's superiority as a monetary system lies in its fundamental characteristics. One of the key advantages of Bitcoin is its...
Emergence of Ethereum and smart contracts
The Ethereum blockchain was conceived as an expansion of the Bitcoin blockchain, adding a new layer of functionality that would...