$BTC The decision to limit Bitcoin's supply to 21 million coins was made by its pseudonymous creator, Satoshi Nakamoto. While the exact reasoning isn't explicitly stated, several theories and explanations have emerged:

* Scarcity: Limiting the supply creates scarcity, a fundamental principle that drives value. Like gold, which has a limited supply, Bitcoin's scarcity is intended to make it a desirable and potentially appreciating asset.

* Deflationary Model: Unlike traditional fiat currencies, which can be printed at will by central banks, Bitcoin's fixed supply aims to create a deflationary model. This means that as demand for Bitcoin increases, its value is likely to rise, as there will only ever be a limited number of coins available.

* Mimicking Precious Metals: The 21 million limit, along with Bitcoin's halving schedule (where the rate of new coin creation is halved every four years), is often seen as mimicking the finite supply and extraction process of precious metals like gold and silver.

* Preventing Inflation: By limiting the supply, Bitcoin aims to avoid the inflation that can occur when governments print excessive amounts of money, devaluing the currency.

It's important to note that the 21 million limit is a fundamental rule of the Bitcoin protocol, and changing it would require a significant consensus among the Bitcoin community, which is considered highly unlikely.