Maximum Bitcoin Supply Bitcoin’s inherent scarcity is a defining characteristic that distinguishes it from traditional fiat currencies and many other cryptocurrencies. This fixed supply, predetermined by its underlying code, is a crucial factor driving its value proposition and potential for long-term growth. Understanding this limitation is key to grasping Bitcoin’s unique economic model. Bitcoin’s Limited … Read more
Maximum Bitcoin Supply Bitcoin’s inherent scarcity is a defining characteristic, built into its very core. This fixed supply, capped at 21 million coins, is a crucial element of its value proposition and differentiates it significantly from traditional fiat currencies and many other assets. Understanding this limit requires exploring its historical context and implications. The Historical … Read more
The Role of Mining and Network Security Bitcoin halving significantly impacts the profitability of Bitcoin mining and, consequently, the security of the network. The halving event, which cuts the block reward in half, directly affects miners’ revenue streams, forcing them to adapt or potentially exit the market. This dynamic has profound implications for the long-term … Read more
How Many Bitcoins Exist? – An Introduction Bitcoin operates on a fundamentally different principle than traditional fiat currencies. Unlike the potentially unlimited printing of paper money, Bitcoin has a predetermined, fixed supply. This inherent scarcity is a cornerstone of its design and a key driver of its value proposition. Understanding this fixed supply is crucial … Read more
Stock-to-Flow Model Explained The Stock-to-Flow (S2F) model, popularized by analyst PlanB, attempts to predict the price of Bitcoin based on its scarcity. It posits that the scarcity of Bitcoin, represented by its stock-to-flow ratio, is a primary driver of its value. This model, while controversial, has garnered significant attention within the cryptocurrency community. Core Principles … Read more
What is Bitcoin Halving? Bitcoin halving is a programmed event in the Bitcoin protocol that reduces the rate at which new Bitcoins are created. This occurs approximately every four years, or every 210,000 blocks mined, and is designed to control inflation and maintain the scarcity of Bitcoin. The halving cuts the block reward, the amount … Read more