Bitcoin is built on one of the most powerful principles in economics: scarcity.
There will only ever be 21 million BTC, making it a deflationary asset โ often called "digital gold." But have you ever wondered: What if Bitcoin didnโt have a supply cap?
Letโs explore how that could change everything:
๐น 1. Inflation Like Fiat? If BTC had unlimited supply, it could face inflation โ just like traditional currencies (like USD or INR). More coins = less value per coin ๐ธ. People might start losing trust in BTC as a store of value.
๐น 2. Miners Forever? Right now, miners are rewarded with new BTC, but those rewards will eventually stop. If Bitcoin had no cap, miners could keep earning foreverโฆ but it would also mean continuous inflation. ๐๐
๐น 3. Would It Still Be โDigital Goldโ? Gold is valuable because it's rare. Bitcoinโs 21M cap is what gives it that same scarcity. No limit? It would feel more like a government-controlled currency, not a decentralized treasure. ๐ช
๐ฌ So, Why Does This Matter?
The hard limit on Bitcoin's supply is what makes it special in a world full of money printing and inflation. It's a form of financial discipline baked into the code.
But some argue that flexibility in supply could make crypto more adaptable to future needs. ๐ค
๐ข What do YOU think? Should Bitcoin or other cryptos stay hard-capped โ or evolve to be more flexible?
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