There is ahard capon the supply of Bitcoins, however, under rare circumstances the hard cap can change. Bitcoin has a famous stipulation that it will lure investors only if the supply of bitcoins is limited and finite. For this reason, it is said that no bitcoins will be produced over 21 million.
People also ask
What is Bitcoin’s hard cap?
This limit, known as the hard cap, is encoded in Bitcoin鈥檚 source code and enforced by nodes on the network. Bitcoin鈥檚 hard cap is central to its value proposition, both as a money and an investment. Like gold and real estate, Bitcoin is a successful store of value because it is difficult to increase its supply.
Why is Bitcoin鈥檚 supply capped at 21 million?
Bitcoin鈥檚 supply is capped at 21 million. But why did Satoshi Nakamoto pick that specific number? There are at least two plausible explanations. Bitcoin was designed so that there is a finite supply of 21 million BTC. One explanation for the 21 million Bitcoin limit is the money supply replacement theory.
What is the cap for cryptocurrencies?
For other cryptocurrencies, this cap can vary considerably鈥攔anging from as low as 18.9 million for Monero (XMR) and Dash to as high as 100 billion for the likes of XRP and Tron (TRX). Bitcoin’s limited supply is a huge advantage.
What happens if bitcoin doesn’t reach its cap?
A consequence of Bitcoin not reaching its planned cap is that it leaves open the possibility that the cryptocurrency’s network will remain functional for a long time after 2140. No bitcoins will be issued, but transaction blocks will be confirmed, and fees will become the primary source of revenue.