- December 19, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The post Is Bitcoin’s 21M Supply a Lie? BlackRock’s Controversial Take appeared first on Coinpedia Fintech News
After Bitcoin hit an ATH in December the concern related to its Bitcoin has always been known for its fixed supply of 21 million coins. This cap is what makes it unique and valuable, setting it apart from traditional currencies that can be printed endlessly. But now, a video from BlackRock has stirred up questions about whether this limit is truly set in stone.
What Did BlackRock Say?
In a recent explainer video shared by Michael Saylor, BlackRock highlighted Bitcoin’s fixed supply as a key feature, saying it helps control inflation and maintain value. However, they added a surprising disclaimer: there’s “no guarantee” that the 21 million won’t change.
This statement has sparked instant reactions, with some wondering if Bitcoin’s scarcity is really as secure as people think. Critics like Joel Valenzuela even claimed that this could be part of a plan to change Bitcoin’s rules.
Can the Total Supply Be Changed?
Technically, yes—but it’s not easy. For the 21 million limit to be altered, the Bitcoin community would need to agree on a major change, called a “hard fork.” This would split the network into two versions: one with the original cap and one without it.
However, many believe that a Bitcoin without its supply cap wouldn’t be Bitcoin anymore. As Bitcoin developer Super Testnet explained, “The cap defines Bitcoin. Without it, it’s just something else entirely.”
The idea of changing the cap often comes down to miners. Miners secure the Bitcoin network and are rewarded with new Bitcoin for their work. But these rewards are halved every four years, and by 2140, all 21 million coins will have been mined. After that, miners will rely only on transaction fees for income.
Some worry that this might not be enough to keep miners incentivized in the long run. Removing the cap could ensure miners stay profitable, but it would also disrupt Bitcoin’s core principle of scarcity.
A Look at the Bigger Picture
The Bitcoin community has a history of resisting big changes. Back in 2016-2017, miners tried to increase Bitcoin’s block size to improve scalability. Even though 95% of miners supported the idea, the broader community rejected it, showing that Bitcoin’s rules aren’t easily altered.
As of now, the 21 million cap is Bitcoin’s unique identity and any change to this can be risky and may bring a wider crypto crash since Bitcoin is on an upward trajectory despite some short-term drops.
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FAQs
A hard fork splits the Bitcoin network into two, one keeping the original supply cap and the other potentially removing it.
The 21 million cap ensures scarcity, which is central to Bitcoin’s value and distinction from traditional inflationary currencies.
