Why Bitcoin is 21 million (Why is Bitcoin 21 million coins)

Why Bitcoin is 21 million. Why is Bitcoin 21 million? Today, we can clearly see that the price of Bitcoin has dropped nearly 90% from its historical high of $20,000 in March. Nevertheless, Bitcoin is still at its all-time high (so far).

In early 2020, after a price crash, Bitcoin has risen above $20,000 again, leading some to view this number as the “end of the bull market.” However, over time, this number may continue to decrease, as its price continues to rise and the purchasing desire of others may be affected. Therefore, people consider Bitcoin as a form of currency rather than an asset category. So the question is: why is Bitcoin more popular than gold and oil? The answer is simple: because Bitcoin is designed as a programmable and secure network to store, transfer, exchange value or store value. However, this blockchain network does not support anything, such as transaction data, they can only be verified by nodes, with no central control involved. Because these systems use proof-of-work algorithms to protect the security and immutability of transaction records. Although Bitcoin has decentralized characteristics and is still a global computer, its operation differs from traditional computer programs because it is open source, licensed, and relies on computing resources like many technologies. On the contrary, the way the entire network becomes more efficient is through mining rewards, while still preserving support for certain cryptocurrencies like ETH. In addition, if Bitcoin cannot become a scarcity like gold, factors such as energy consumption need to be reconsidered. (Bitcoinist)

As mentioned earlier: “I use this term to describe Bitcoin as the first electronic currency on a public ledger in the world.” In fact, “everyone believes” it was initially just a small part of Bitcoin. But the reality is different. In fact, most of the Bitcoin community is striving to achieve this goal. “Can you imagine doing this?” Now it seems they have indeed realized that their dreams are conditional and some people even feel unable to accept the practical benefits that Bitcoin brings, so they hope to apply it to all users in some way. However, even if a few people have achieved extensive adoption in the Bitcoin ecosystem, some unofficial ones agree with their vision.

Of course, Bitcoin itself is not a real monetary system. Instead, it is a new economic incentive mechanism based on protocols, designed to enable individuals to create more wealth. However, to truly understand this, it must be understood that whichever path is chosen, only those willing to take risks can successfully overcome difficulties.

Let us review the development process of the past 30 years and see why Bitcoin has so many uses. Something that has existed since 2009, along with recent innovations, many of which have sparked heated discussions among people.

Why is Bitcoin 21 million coins

Editor’s note: This article is from Caiyun Blockchain (ID: cybtc_com), author: irishash, and authorized by Odaily Star Daily.

Bitcoin is one of the earliest cryptocurrencies in the world. It was initially considered a means of value storage, a medium of exchange, or a payment mechanism; however, over the past few years, it has been found that this fact has become more important over time. Why are there 21 million BTC? Does this mean that if someone wants to hold 1000 BTC and send it to the other half, they need $1 million to double that number? So what drives the price of Bitcoin? To answer this question, we must first understand what “21 million” means. “Quantity” refers to the length of time and distribution of at least 10,000 Bitcoins distributed to an address. However, each Bitcoin is not an equalized unit or indivisible unit. In other words, these tokens can only be distributed and received in certain proportions without affecting the quantity that other tokens can provide. For example, private electronic wallets like Bitcoin can serve millions of people and can be used for various purposes. When you buy Bitcoin, they are usually linked to your fiat currency-now, only a few Bitcoins are already in existence. Therefore, to obtain 21 million BTC, you must have its native tokens. Why Bitcoin has a total of 200 million BTC According to CoinMetrics data, as of October 30, 2018, there were over 2.1 billion dollars of unspent assets on the Bitcoin network, including $377 million in nondilutive tokens. Although Bitcoin currently accounts for only about 1% of the total circulating supply, at the end of 2017, it accounted for only 10% of the global total, and it was not until recently that its market capitalization reached a historic high of $1 trillion. The peak at the end of 2017 was when Bitcoin’s price was just approaching $20,000 for most of 2020. However, since then, the growth of Bitcoin’s market value has slowed significantly. It is claimed that the end of 2017 saw a sharp decline in Bitcoin’s market with a decrease in trading volume, as Bitcoin balances on most exchanges were below average. Meanwhile, the low price at the beginning of 2017 caused Bitcoin’s price to drop to an all-time low and then quickly rebounded to a high of around $4,000. As interest in the market grew among investors, some large companies even began to invest in retail investors. For example, Jack Dorsey, CEO and founder of Square, said, “He is considering creating a Bitcoin ETF.”