Post
Topic
Board Economics
Re: The curious case of Bitcoin's fixed supply
by
Fortify
on 05/09/2025, 20:17:37 UTC
I guess you're not just finding out that Bitcoin has a fixed supply of 21 million coins. Yes you read right. This fixed supply can be considered a pace setting move, but can have many effects in its users and the world economy. Unlike flat currency, the value of Bitcoin will keep increasing because more can not be printed into usage, furthermore scarcity and increased demand can lead to higher price level. Unlike many developing countries currencies that lose value, the Bitcoin has already proven to be a very attractive alternate as a store of value function. My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

It has no effect for anyone who has educated themselves about the basic principal of bitcoin, it's like saying water is wet - extremely obvious for anyone who has encountered it. It's surprising that you think this is some kind of revelation when it is the very foundation of Bitcoin and what has in part made it so great. Unlike what you think, it could also eventually lead to it's downfall - while certain central banks print money like it is going out of fashion, others take a more moderate approach and understand that if you wanted to keep a currency stable when the population increases then the theory goes that you would print a little bit extra to help with circulation while helping to devalue it as a side benefit to the citizens of that country. The fact that Bitcoin is currently limited to 8 decimal places might eventually become a limiting factor in its usability.