In brief 1 Bitcoin was designed so that there is a finite supply of 21 million BTC. 2 One explanation for the 21 million Bitcoin limit is the money supply replacement theory. 3 An alternative suggestion is that the limit could be mathematically extrapolated from Bitcoin's operating parameters.
What happens when bitcoinreaches its limit?
When Bitcoin is close to reaching its limit, the reward amounts may not be enough to cover operational costs at miners, let alone generate profits. If and when the supply limit is reached, Bitcoin rewards are supposed to vanish. In both instances, transaction fees are expected to pick up the slack.
Is there an infinite supply of bitcoin?
When the elusive Satoshi Nakamoto initially developed Bitcoin in 2009, they designed the source code to specifically cut off its supply at 21 million. But some cryptos have an infinite supply, meaning endless coins can be mined for years and years to come.
How many Bitcoins can be generated per block?
The number of Bitcoins generated per block decreases 50% every 210,000 blocks or four years approximately. Consequently, the maximum number of total Bitcoins cannot exceed 21 million; unless the Blockchain protocol is changed for augmenting the maximum Bitcoin supply.
