Bitcoin’s Maximum Supply – Why It’s Limited?

Krutika Adani

21M Bitcoin

  • Unlike traditional currencies, Bitcoin has a fixed supply.

  • Only 21 million BTC will ever exist.

  • This scarcity is key to Bitcoin’s value and decentralization.

Why 21 Million BTC?

  • Bitcoin’s creator, Satoshi Nakamoto, capped the supply.

  • The limit prevents inflation, unlike fiat currencies.

  • The fixed supply mimics gold’s scarcity, making Bitcoin a digital asset.

How Are Bitcoins Created?

  • New Bitcoin is mined as a reward for verifying transactions.

  • Every four years, the reward is cut in half through a halving event.

  • This slows down Bitcoin issuance, ensuring long-term scarcity.

What Happens When All 21 Million Are Mined?

  • The last Bitcoin is expected to be mined around 2140.

  • Miners will rely on transaction fees instead of new Bitcoin rewards.

  • Lost Bitcoin over time may reduce the circulating supply even further.

Will Bitcoin’s Scarcity Drive Its Price Up?

  • Limited supply combined with rising demand may impact price growth.

  • Some refer to Bitcoin as "digital gold" due to its deflationary nature.

Learn more