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. 

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