Programmable Scarcity
Why is there a limited amount of bitcoin
Bitcoin (BTC) is still the largest and most valuable cryptocurrency on the market by a substantial margin. The price of one Bitcoin is over $20,000, and its market cap is slightly over $387 billion. To illustrate Bitcoin's popularity, the second-largest cryptocurrency, Ethereum, is priced at $1,380 per coin, and its market cap is about $170 billion. Despite a rough year for cryptocurrencies, Bitcoin has remained on top of the market. Bitcoin's Basic Design First, a lack of clear and uniform cryptocurrency regulation — both within and across countries — creates tremendous uncertainty for long-term investors. It is still unclear in the U.S., for example, when a cryptocurrency falls under the regulatory framework of a security subject to Securities and Exchange Commission regulations and when it is deemed to be an asset or commodity as proponents of bitcoin and ethereum have claimed.
Only 2 million Bitcoins left to be mined, here is what happens when it runs out of supply
Bitcoin cap limit
There’s also the desire to “get rich quick” or even just boost your income beyond what you can earn from working. Again, I’m not sure how much we can blame people for that. When the current monetary system is making it harder and harder for people to save anything after paying the mortgage and the costs of living, it’s natural to look for other ways of making money. If the guy mentioned above genuinely believed that investing in Bitcoin would mean that his kids could go to university whilst avoiding being saddled with the debt, then it’s natural for him to take that option. It was the lack of understanding of money, finance or risk management that led to him making such a bad decision. XRP Price Rises as Ripple Lawsuit Expectations Soar: Details Of the total 21 million Bitcoins that will ever be available, 90% have been mined within 12 years of the cryptocurrency’s creation. Satoshi Nakamoto, the person (or persons) responsible for creating Bitcoin kept the supply fixed in order to keep Bitcoin scarce and valuable. However, with only a limited number of coins available for mining, there are concerns about what will happen to the Bitcoin economy when the supply runs out.