Will Bitcoin’s 21M Hard Cap Stay?

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What is a hard cap?

A hard cap is the maximum supply of a cryptocurrency that can ever exist. It’s hardcoded into the blockchain’s code and sets a strict limit on how many tokens or coins can be created. This limit promotes scarcity, which can help boost the value of each token over time.

Take Bitcoin, for example. Its creator, Satoshi Nakamoto, set a hard cap of 21 million coins. No matter how much demand there is or how many miners try to produce new Bitcoin, the supply will never exceed 21 million.

Why does a hard cap matter?
Absolute scarcity is a big deal in crypto; it’s like Bitcoin being digital gold, but even more limited. If demand increases, the price may rise because no new coins can be created to meet that demand. The only way a cryptocurrency could increase its supply would be by changing its core code — basically reinventing itself.

Why did Satoshi chose 21 million

Compare this to gold: If it were easier for everyone to mine gold suddenly, the supply would increase, and the price would drop. Bitcoin doesn’t have this issue because of its fixed, hard cap.


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