Login Register

What Is the Limited Bitcoin Supply?

Satoshi Nakamoto on October 31st, 2008
in Bitcoin
 He published his white paper, and on January 3, 2009, the first Bitcoin block was created. The volume of bitcoin offered to the market since 2009 is around $ 184 billion today. A store of value in financial markets is a financial product that maintains its value over time and is therefore used for the purpose of accumulating value. Gold and money are at the top of these products . In order for an investment instrument to maintain its value over time, its supply must be kept under control without speculation. Gold is limited by the world’s reserves. For this reason, it has been used as the most important value storage tool for centuries. Money, on the other hand, is the financial asset produced to overcome the difficulties brought about by trade with gold, whose value is protected by the guarantee of the state. Its supply is controlled by central banks and it is tried to prevent it from creating inflation.

Bitcoin is a financial asset that has never been seen before in the financial markets with
its blockchain
 infrastructure. Its supply is limited to 21 million and is decentralized. Unlike gold , it is not managed by any center, but its real value, such as money, is far below the traded price. We can compare the amount written on the paper in money with the cost of mining in bitcoin and the value in the market. This fiat value of Bitcoin is provided by the blockchain infrastructure. With the blockchain infrastructure, transactions made without any decentralization are recorded.  So if you have 1 bitcoin in your wallet, it cannot be changed unless you make transactions thanks to the blockchain .

This allows bitcoin to qualify as a store of value thanks to its security.  But this security is not enough to use as a store of value. It is also important that it maintains its value, which is related to the limit of the supply of bitcoin. As the need for Bitcoin increases, it is certain that its supply will not increase. Thanks to its decentralization, no changes can be made to the blockchain without 51% of miners coming together. The increasing use of bitcoin as a store of value will also increase its value as it will reduce the amount of bitcoin circulating in the market. We will see together how bitcoin, which has value retention features, will follow a path with the halving of its supply in the coming period. 

Find out what changes the halving can make on the price of bitcoin in the video on our YouTube channel! Click on the link to watch. 

What Is Aave and Why Are People Actually Using It?
In the world of DeFi where new protocols pop up every week, Aave has stayed relevant for one simple reason. It works. It is not flashy. It is not meme-fueled. It is just a solid piece of infrastructure that lets people lend and borrow crypto without going through banks or middlemen. And when we say people, we mean everyone from casual users to DAOs managing millions. What Aave Really Does Aave is a...
What Are Funding Rates in Crypto Markets
If you have ever opened a leveraged position in crypto using perpetual futures, chances are you have come across something called a funding rate. It might seem like a background detail, but it has a huge impact on your profits and losses. In fact, many traders check funding rates before even thinking about opening a position. That is because this tiny percentage can either quietly eat away at your...
Judge Rejects Ripple-SEC Case - White House Says Customs Duties May Be Delayed
Ripple v SEC Judge Rejects Ripple and the U.S. Securities and Exchange Commission (SEC) have denied a request to lift a permanent injunction and reduce the penalty by Judge Analisa Torres of the Southern District of New York. “Nothing has changed — neither side is arguing otherwise,” Judge Torres said, recalling the SEC’s previous position that Ripple would continue to violate the law. Both sides had...
What Are Carry Trades and How Do They Work
Carry trading is one of those strategies that keeps showing up across financial markets. Whether it’s in traditional currency pairs or the more experimental corners of crypto, the logic stays the same. You borrow money where it is cheap and you invest it where it pays more. The profit comes from the gap between those two yields. It sounds simple enough, but the execution is anything but. When done...
What Is Basis Trading and How Does It Work
Basis trading is getting more attention lately, especially among hedge funds, crypto traders, and institutions that want reliable profits without betting on market direction. It is one of those strategies that sounds complex at first but is built on a simple idea. The goal is to take advantage of the price difference between the two versions of the same asset. You are not trying to guess where the...


Create an account

Now create an account where you can use your knowledge.
SIGN UP