Bitcoin and the 21 Million Limit

#BinanceAlphaAlert Bitcoin, created in 2009 by Satoshi Nakamoto, is a unique digital currency because it has a limited maximum supply: only 21 million will exist.

This restriction was designed to prevent inflation and increase its value over time.

New Bitcoins are created through mining, and the reward for mining blocks is halved approximately every four years in events known as halvings. Currently, the reward is 3.125 BTC per block (after the 2024 halving).

It is estimated that the last Bitcoin will be mined around the year 2140. From then on, miners will be rewarded solely through transaction fees. The 21 million limit is a pillar that ensures the scarcity and potential value of Bitcoin in the long term.

Several significant changes will occur in the Bitcoin network:

1. There will be no more rewards for newly created BTC per block. Currently, miners receive two types of income:

A fixed reward for mined blocks (new BTC).

Transaction fees included in that block.

When the 21 million limit is reached, the fixed reward will disappear. Only transaction fees will remain as an incentive to mine.

2. Miners will rely solely on fees

This could have several consequences:

If the fees are sufficiently high, miners will continue to maintain the network.

If they are not, there could be fewer incentives to mine, which could affect the network's security (less computing power = more vulnerable network).

3. Impact on network security

The security of Bitcoin depends on many miners competing to validate blocks. If revenues drop too much, some might abandon the network.

4. Total Scarcity = Possible Increase in Value

Since no more BTC can be created, the supply will be completely fixed.

If demand continues to grow:

The value of BTC could increase.

This would reinforce its position as a "store of value" (digital gold).