A hard cap refers to the maximum number of coins a cryptocurrency can ever have, embedded in its blockchain code. This limit fosters scarcity, enhancing the value of each token over time. For instance, Bitcoin has a hard cap of 21 million coins, ensuring that no matter the demand, the supply remains fixed. This scarcity is crucial, akin to Bitcoin being digital gold. Unlike gold, which can see increased supply if mining becomes easier, Bitcoin's supply is immutable unless its core code is altered. The term 'hard cap' also applies to initial coin offerings (ICOs), where it denotes the maximum fundraising goal. Bitcoin's hard cap is vital for its status as a store of value, but discussions about changing it have emerged. Historical debates show that altering Bitcoin's core principles could lead to chaos and distrust within the community. Ultimately, while theoretically possible, changing the hard cap would undermine the foundational trust and principles of Bitcoin, making it unlikely to happen. Read more AI-generated news on: https://app.chaingpt.org/news

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