From the beginning the supply of Bitcoin that will ever exist has been limited. Well, when Satoshi Nakamoto designed the cryptocurrency, he did it looking for it to be scarce enough so that it did not suffer from inflation. Thus, and after eleven years of existence, Bitcoin has sapped almost all the supply that will ever exist. With crypto influencer Anthony Pompliano, reminding us at the Tweet of the day that there are only 2.5 million Bitcoin left to mine.
Just 2.5 million more Bitcoin
The higher the supply with a stable demand, the price falls, the lower the supply with a stable demand, the price increases. This is one of the principles of economics, and it is the basis of the design of Bitcoin. Well, when Satoshi Nakamoto designed the cryptocurrency, he did so seeking that the price of it did not suffer from inflation like fiat money. But, on the contrary, it continued to increase with the passage of time.
Thus, Nakamoto set the total supply of Bitcoin that can be mined at 21 million BTC. Creating the Halving, an event that occurs every 210,000 blocks mined in the cryptocurrency Blockchain, and that reduces the mining reward in half. As a mechanism to create shortages in the supply of Bitcoin.
Going from a reward of 50 Bitcoin for each block mined, to one of 25 in 2012, one of 12.5 in 2016, and finally one of 6.25 this year. Thanks to which, so far 18.5 million Bitcoins have been mined, leaving only 2.5 million more BTC to be mined in the coming years. As Anthony Pompliano commented:
«18.5 million Bitcoin has already been officially mined out of the 21 million that will be issued. Only 2.5 million Bitcoin remain to enter circulation. You cannot prove how many dollars or gold are in circulation, but Bitcoin can be audited by anyone«.
In this way, Pompliano would not only be highlighting the operation of BTC, and the limits on its money supply. Rather, it would refer to the transparency that prevails in cryptocurrency, and that cannot be achieved by other assets such as the US dollar or gold.
Related
