Monday, July 14, 2025
  • About us
  • Economic Calendar
  • Price Predictions
  • Coins Alerts
  • Crypto Portfolio Tracker
  • Exclusively from Our Partners
Cryptheory
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
        • Binance Futures Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions
No Result
View All Result
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
        • Binance Futures Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions
No Result
View All Result
Cryptheory
No Result
View All Result

That is why BTC’s supply is limited

by Margharet Tess
April 5, 2022
in Cryptheory News
Reading Time: 6 mins read

One can only speculate as to why Satoshi chose the number 21 million BTC. One possible explanation is the meme number 42 (from Douglas Adams’ The Hitchhiker’s Guide to the Galaxy, of course) half of which is 21. However, it could also have been pure arbitrariness that prompted the anonymous BTC father Satoshi Nakamoto to limit his digital peer-to-peer cash system to 21 million units.

Although they have led to some speculation, the motives are ultimately irrelevant. The only important thing is that there is this upper limit of 21 million BTC. Because with BTC, humanity has an asset at hand for the first time, the supply of which is finite.

One can say it so clearly: the invention of digital scarcity is nothing less than an innovation of the millennium. There are goods that are also scarce. Naturally limited commodities such as gold or oil are examples of this. But if you expand your perspective beyond the borders of planet earth, suddenly the yellow precious metal is no longer rare at all. There can only be absolute scarcity in the digital space. But creating absolute digital scarcity is no easy task. On the contrary.

That is why BTC's supply is limited

The social layer enforces the limit

Because BTC is only limited to 21 million coins because the network participants agree on it. The original Satoshi code provides the limit.

But code can be changed. Therefore, in the end, it is not the code that is decisive for BTC, but the social consensus on which the system is based. Because 21 million BTC are ultimately just the rules of the game that Bitcoiners have agreed on. There would be no problem creating a coin, such as a hard fork, with supply capped at 20 million or less. However, this does not automatically make this coin scarcer in the actual sense of the word, since the players are missing.

The chess game analogy is therefore popular among Bitcoiners. You can change the rules of chess. But what is missing are the players. Chess is a game that has matured socially over centuries, and its cultural significance is unique. Nobody would think of implementing a new set of rules.

That is why BTC's supply is limited

The analogy is also good because it shows how long social consensus building actually takes. Chess, for example, has been established in Europe since the early 13th century – in Asia and Persia its tradition is probably much older.

Compared to that, BTC is still in its infancy. The digital gold is only 13 years old – and has come a long way for that time.

Limiting the ceiling is only worth as much as the social class that enforces it. And this aspect is crucial.

A maximalist rampart

Bitcoiners can use a full node to actively decide which protocol rules they want to follow. Hence the saying “Don’t trust, verify!“. There are 21 million BTC precisely because bitcoiners chose to install the very software that sets the limit. This aspect of decentralized control is particularly important when it comes to money. Finally, history has shown that the monopoly on the creation of money always has led to taking advantage or inflation. Controlling the faucet of money is too enticing a tool to leave untouched.

It is precisely this social protective layer that Bitcoiners form around their favorite money that is repeatedly decried as “toxic maximalism” on social media. The operation of full nodes and the content-related defense of BTC is exactly what gives digital gold its value. Michael Saylor agrees:

I don’t want to hear you get mad about transaction fees and want to roll out smart contracts and change everything. […] I want to hear you will defend the network to the death against anyone who wants to break it or compromise it in any way,

let Saylor quote in the interview with Pomp.

And that’s exactly what it is: BTC is limited to 21 million coins because there is a critical mass of Bitcoiners who want exactly that and express their will through full nodes. It is also this aspect of decentralization that makes BTC perhaps the best store of value in human history.

By the way: After the last BTC has been mined, it’s not all over. You can find out here how the cryptocurrency No. 1 will continue after the year 2140.

  • Author
  • Recent Posts
Margharet Tess
Margharet Tess
Editor, Developer at Cryptheory Labs
I have been active in the cryptocurrency world for over 6 years, during which I have written countless articles about this sector. What fascinates me most about cryptocurrencies is their technological aspect and the problems they aim to solve. In the past three years, I have ventured into app development and am currently working on a larger project called P2E Buzzer. Stay tuned for the surprise. 🙂 My previous experiences: Business2Community.com, TradingPlatforms.com
Margharet Tess
Latest posts by Margharet Tess (see all)
  • Bitcoin’s Ready to Blow… Upwards? - July 3, 2025
  • Ethereum’s $5K Dream: Breakout or Breakdown? - July 2, 2025
  • Ethereum’s Not Dead Yet: On-Chain Data Screams Rebound & Trading Tips - June 27, 2025
Previous Post

Does Crypto Make Online Casinos Better?

Next Post

Cryptocurrency is Transforming the Financial Ecosystem

Related Posts

Bitcoin’s Ready to Blow… Upwards?
Uncategorized

Bitcoin’s Ready to Blow… Upwards?

July 3, 2025
Ethereum's $5K Dream: Breakout or Breakdown?
Cryptheory News

Ethereum’s $5K Dream: Breakout or Breakdown?

July 2, 2025
Ethereum Is Cooking Again: Are You Gonna Ride or Cry?
Cryptheory News

Ethereum Is Cooking Again: Are You Gonna Ride or Cry?

June 30, 2025
Altcoin Tsunami Loading: Bitcoin Dominance Teases the Final Altpocalypse (Again)
Cryptheory News

Altcoin Tsunami Loading: Bitcoin Dominance Teases the Final Altpocalypse (Again)

June 26, 2025
Bitcoin: Everyone’s Scared, But The Charts Are Screaming “It Ain’t Over!”
Uncategorized

Bitcoin: Everyone’s Scared, But The Charts Are Screaming “It Ain’t Over!”

June 25, 2025
To Everyone Selling Their Crypto: Take a Breath, Quit Panicking, and Read This Like a Pro
Uncategorized

To Everyone Selling Their Crypto: Take a Breath, Quit Panicking, and Read This Like a Pro

June 23, 2025
2025 Déjà Vu? Why This Bitcoin Dump Might Just Be Your 2020 Moment All Over Again
Cryptheory News

2025 Déjà Vu? Why This Bitcoin Dump Might Just Be Your 2020 Moment All Over Again

June 23, 2025
Altseason Is Coming: Time to Saddle Up, Degens
Cryptheory News

Altseason Is Coming: Time to Saddle Up, Degens

June 20, 2025
Bitcoin at $104K: Spoofers, Liquidations & Degens – Welcome to the Danger Zone
Cryptheory News

Bitcoin at $104K: Spoofers, Liquidations & Degens – Welcome to the Danger Zone

June 20, 2025
Please login to join discussion
Track all markets on TradingView
Score: 0
Game Over

Popular

To Everyone Selling Their Crypto: Take a Breath, Quit Panicking, and Read This Like a Pro

To Everyone Selling Their Crypto: Take a Breath, Quit Panicking, and Read This Like a Pro

June 23, 2025
BTC Analysis & Trading Tips: Bitcoin’s Banging on Resistance – Is It Time to Moon or Nuke?

BTC Analysis & Trading Tips: Bitcoin’s Banging on Resistance – Is It Time to Moon or Nuke?

June 25, 2025
What is Altcoin: Unveiling the World of Alternative Cryptocurrencies in 2025

What is Altcoin: Unveiling the World of Alternative Cryptocurrencies in 2025

June 18, 2025
Ethereum Is Cooking Again: Are You Gonna Ride or Cry?

Ethereum Is Cooking Again: Are You Gonna Ride or Cry?

June 30, 2025
Bitcoin at $104K: Spoofers, Liquidations & Degens – Welcome to the Danger Zone

Bitcoin at $104K: Spoofers, Liquidations & Degens – Welcome to the Danger Zone

June 20, 2025
10 Brilliant Reasons I’m Still Holding My 2018 Altcoin Bag (And Totally Not Crying Inside)

10 Brilliant Reasons I’m Still Holding My 2018 Altcoin Bag (And Totally Not Crying Inside)

July 1, 2025
TRON’s On-Chain Reality Check: Growth, Greed, and Why TRX Ain’t Dead Yet

TRON’s On-Chain Reality Check: Growth, Greed, and Why TRX Ain’t Dead Yet

June 19, 2025
Ethereum Price Analysis & Trading Tips: Triangle Squeeze and RSI Shenanigans – WTF Happens Next?

Ethereum Price Analysis & Trading Tips: Triangle Squeeze and RSI Shenanigans – WTF Happens Next?

June 18, 2025
Bitcoin’s Ready to Blow… Upwards?

Bitcoin’s Ready to Blow… Upwards?

July 3, 2025
Altseason Is Coming: Time to Saddle Up, Degens

Altseason Is Coming: Time to Saddle Up, Degens

June 20, 2025

💥 What's Your Crypto Trading Spirit Animal?

1. Your reaction to a red 15% candle?

2. How do you read charts?

3. What’s your biggest trading sin?

4. Favorite indicator?

5. How do you set your stop-loss?

6. What's your ideal trading environment?

7. How do you handle losing trades?

8. What’s your position sizing like?

9. What's your backup plan if you get liquidated?

10. Your crypto endgame?

Crypto News

Bitcoin

Ethereum

Altcoins

Cryptocurrency

Platforms for Copy Trading

Platforms for Grid Trading

Glossary of trading and crypto terms

Crypto Portfolio Tracker

 

Cryptheory Labs Projects

Guest Post for Free

On our website, you can share your opinions and insights. This feature is reserved for non-promotional articles. We are already working on a system for donations and rewarding every author.

This website is here for those of you who want to be at the forefront of innovation and new technologies like Bitcoin. But first, we need to tackle the challenges and survive in the unforgiving world of crypto assets. THIS IS CRYPTHEORY!

Follow Us

  • Terms Of Use
  • Privacy Policy
  • About us
  • Contact us

© 2024 Cryptheory - F**k the forex, we want gains!

Shiba Inu loading
No Result
View All Result
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions

© 2024 Cryptheory - F**k the forex, we want gains!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.