Why does Bitcoin have a quantity limit (Why does Bitcoin have an upper limit)?

08/17/2023 10:54 • Blockchain Buzz • 69 views

Why does Bitcoin have a quantity limit? According to Coindesk, the quantity limit of Bitcoin is designed to be dynamically adjusted based on the needs of traders and miners. Why does Bitcoin have these features? Because it is not a new asset class, but the same as other currencies. Therefore, if users want to deposit Bitcoin into an exchange, they need to convert all the deposits of that exchange into BTC for payment. This means that only a certain number of users can use that account.

Additionally, since there are no strict definitions of “mining” conditions or requirements, only a Bitcoin address can be set, and it is not possible to set the balance of how many cryptocurrencies are included in a wallet.

Why does Bitcoin have an upper limit

Editor’s Note: This article is from Caiyun Blockchain (ID: cybtc_com), authorized reproduction by Odaily Planet Daily.

Bitcoin has attracted a lot of attention since its inception because its price volatility is much higher than expected. However, since it is not limited to a certain value, when we consider Bitcoin as a means of payment, we often face many problems. So can Bitcoin be infinitely scalable? The answer is simple – it is achieved through a consensus algorithm, which means that users can use this currency or what they want to buy at any time for transactions. But in order to maintain a sufficiently high or low price for a coin, more people need to participate. And to ensure the fair operation of this system, only a few people are willing to accept the increase in the price of Bitcoin, which generates some unnecessary demand and promotes the increasing use of Bitcoin. 1. Why is there an upper limit? Bitcoin is a very popular cryptographic asset category with various functions such as “traceable”, “tamper-proof”, “secure and reliable”, etc.; 2. The Bitcoin network itself is also a system closely related to the traditional financial system, but there are essential differences between Bitcoin and fiat currency; 3. What is the maximum supply of Bitcoin? The maximum supply of Bitcoin is 21 million tokens, of which about 70% are provided by miners, and the remaining part is given to national governments to ensure the security of the entire system.

From a technical point of view, “usable as a storage medium” and “storage mechanism” is actually a form of using Bitcoin as a medium of exchange. If the total supply of Bitcoin exceeds 21 million units, the amount of circulation can be determined, that is, issuing 1 BTC equals $1 million; if the total demand for Bitcoin is greater than 21 million units, then the total quantity of a certain number can be confirmed as 1 billion RMB (currently accounting for about 5% of the global supply). 4. Why does Bitcoin have an upper limit? The advantage of Bitcoin is that it can effectively protect its property from loss. The main technology used in the Bitcoin network is computer programming, and each type has corresponding rules and restrictions. For many cryptologists, the term “computing power” is actually a relatively limited application method. In fact, even if you already have hundreds of Bitcoin cards, you can still keep them. However, according to the data from Bitinfocharts, there are currently 55,000 ATMs worldwide to choose from; in addition, two companies are preparing to launch a new machine called Ethereum 2.0 – S17Pro smart contract platform.

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Why does Bitcoin have a quantity limit (Why does Bitcoin have an upper limit)?

Why does Bitcoin have an upper limit

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