The Scarcity of Bitcoin: A Hard Cap of 21 Million
The maximum supply of Bitcoin is set at 21 million, a scarcity that often leads it to be compared to 'digital gold.' Through the 'halving' mechanism that occurs every four years, the rate of new Bitcoin production gradually decreases, with the expectation that all will be mined by 2140. This deflationary model sharply contrasts with the unlimited issuance of fiat currency, making Bitcoin a potential asset resistant to inflation. Historically, after each halving, the price of Bitcoin has seen significant increases, further reinforcing its narrative as a store of value (SoV). Scarcity gives Bitcoin a unique appeal in the eyes of long-term investors.
