Price of Bitcoin
It seems blasphemous even to go there, given bitcoin's value proposition as digital gold. But outsiders foresee a day when the 21 million cap might, gasp, come up for debate. Why is bitcoin capped at 21 million It seems blasphemous even to go there, given bitcoin's value proposition as digital gold. But outsiders foresee a day when the 21 million cap might, gasp, come up for debate.
Is there a limit to bitcoin
But let’s assume the majority of bitcoin miners come to a consensus that it’s indeed in their interest to change the cap to, say, defend their revenue stream . Then, they’d have to agree on the size of the cap: do we issue five more million tokens? Ten million? Should the bitcoin supply be unlimited? Want to level up further? Many analysts regard scarcity as one of the critical factors of Bitcoin’s continuing value. The fewer units this currency has, the more the value of each fraction is. However, it’s important to keep in mind that it is not scarcity that creates value. If you draw a portrait, you will create a scarce item. Try to sell it, and you will see how valuable it is. Probably, not 21 million times more valuable than Bitcoin.
How Many Millionaires Were Made From Bitcoin?
Removing the fundamental driver behind Bitcoin’s value proposition is not in miners’ best interest. Although the change would increase miner revenue in bitcoin terms, the loss of faith in the Bitcoin network would result in a catastrophic and irreversible price collapse, leading to a net loss of miner revenue in fiat terms. What’s Stopping a Miner Creating a Coinbase Transaction With More Than the Allowed Block Reward For the Epoch? What makes Bitcoin valuable is a topic on its own and I am not touching it here. What is certain, is that the limit of 21 million bitcoins is much less important than many think. The total supply could be just one bitcoin or a trillion, not much would change. Seeing Bitcoin as a whole and taking the total value as reference is a much better way of looking at it. Because value is always relative, in every way. Doubling the total number of bitcoins simply halves the value of a single one. The total value will always be the same, no matter how it is denominated.