The curious case of Bitcoin's fixed supply

[CTO114]

I guess you're not just finding out that Bitcoin has a fixed supply of 21 million coins. Yes you read right. This fixed supply can be considered a pace setting move, but can have many effects in its users and the world economy. Unlike flat currency, the value of Bitcoin will keep increasing because more can not be printed into usage, furthermore scarcity and increased demand can lead to higher price level. Unlike many developing countries currencies that lose value, the Bitcoin has already proven to be a very attractive alternate as a store of value function. My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

[_act_]

Unlike many developing countries currencies that lose value

The Kuwaiti Dinar is the strongest currency in the world, you can check its price in the last 10 years to know that the currency still depreciated, but just that it will not depreciate like other fiat. All fiat are controlled by the government to depreciate in value which makes it not only many but all of them.

My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

It is not something new anymore, there are many coins and tokens that have limited supply like bitcoin, but most of them are bump and dump. Also some like ethereum are created continuously without limited supply but part of it are also burned.

[Merit.s]

My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

I don’t understand what policy you mean but let me tell you that no shitcoin will be able to be the rival to bitcoin because they were created for a selfish purpose and not to solve any serious problem like bitcoin. Bitcoin is decentralized and censorship resistance. It's pseudonym  and needs no intermediary for a cross boarder transaction. Shitcoins are the opposite of bitcoin and they are duplicate of bitcoin.

Only if a different coin is created in future that can offer us something different and higher than what bitcoin offers. We might see a rival to bitcoin. Currently, there's no coin that can be a rival because bitcoin value increases overtime due to bitcoin halving every four years.

[Hewlet]

... My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

Bitcoins fixed supply is not the only thing that gives it the strength it has enjoyed thus. The fact that it inventor is also unknown and that it can't be linked to any known person or group of persons further strengthen and increase the trust that people have about bitcoin.

What makes bitcoin stand out is that it was not created as a model after any other coin. It came with it uniqueness and having stayed this long, it has become an household name for anything that comes after. They can model theirs to look like bitcoin and try to give it a fixed supply but only time will tell if it will do well in any where close to how bitcoin is currently doing.

[luckyspirit]

Unlike flat currency, the value of Bitcoin will keep increasing because more can not be printed into usage, furthermore scarcity and increased demand can lead to higher price level.

Fixed supply does not give value on its own, it helps but it does not do it on its own. For it to happen you have to have at least the same demand or some increasing demand over time.

My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

There are many shitcoins with fixed supply, and they are completely worthless. If anything, we have seen more and more cryptocurrencies changing to an infinite supply model. It helps with enriching the founders and early whales. 

[YOSHIE]

My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

Bitcoin has added value in various elements and sectors, not the same as other types of crypto, for now Bitcoin has full trust from the world government, as well as world investors and other elements.

Bitcoin is difficult to be competitive by other types of crypto, not a matter of supply, but the value of trust by the people today that makes Bitcoin cannot be competitive, Bitcoin has been proven From year to year starting from 2009 to this moment, that is the greatness even though the creator has no clarity until this moment, besides the pseudonym Satoshi, But many governments and the public make Bitcoin the number one digital currency and cannot be competitive in the digital world.

[Zigabel]

I guess you're not just finding out that Bitcoin has a fixed supply of 21 million coins. Yes you read right. This fixed supply can be considered a pace setting move, but can have many effects in its users and the world economy. Unlike flat currency, the value of Bitcoin will keep increasing because more can not be printed into usage, furthermore scarcity and increased demand can lead to higher price level. Unlike many developing countries currencies that lose value, the Bitcoin has already proven to be a very attractive alternate as a store of value function. My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

I red through the responses here no this thread and i must say that i agree with one of the replies that stated that limited or fixed supply isn't the reason for the valuation as there are other coins out there that are actually fixed with their supply and can never for once be like Bitcoin value wise or with the pricing. even some country Fiat has got a fixed supply and that is why at a time they try to make it scarce to induce value via demand, the main valuation comes from the demand of whatever it is and the only way of inducing that scarcity will be with the use of that limited or fixed supply but again even with that you don't get to horde all of it so some how it will still get to the public for usage because in hording you could end up loosing value.

With Bitcoin its a different situation all together, the fact that it has got a global demand is a key reason to its valuation and when it gains even further recognition for its universality and valuation system, it will become in even more higher demand than it is now and will still turn out even more valuable than it is currently. The valuation with Bitcoin wasn't achieved via the fixed supply alone so even if other coin adopts this and do not have the valuation Bitcoin has, they will be in low demand and still end up not as valued as Bitcoin. Utility wise they need to improve for further recognition and adoption then they can roll in the limited suply and they can get in line but not at same place where Bitcoin currently is.

[Cookdata]

I guess you're not just finding out that Bitcoin has a fixed supply of 21 million coins. Yes you read right. This fixed supply can be considered a pace setting move, but can have many effects in its users and the world economy. Unlike flat currency, the value of Bitcoin will keep increasing because more can not be printed into usage, furthermore scarcity and increased demand can lead to higher price level. Unlike many developing countries currencies that lose value, the Bitcoin has already proven to be a very attractive alternate as a store of value function. My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

Well this isn't my first time though, anyone with basic understanding of Bitcoin knows that the supply both maximum and circulating is subjected to some fixed settings, the maximum supply would remain 21 while the circulating supply will continue to reduced every 4 years because the mining subsidy get slash by half every 4 years. This is why Bitcoin has a huge demand but because the supply is low, we are going to see more price as more people want to hold Bitcoin.

Bitcoin can be used for as a currency and as well as store of value and it wasn't want to be like fiat system. You can use Bitcoin to pay for a thing and the price can be settled at that prevailing price while it can be used as a store of value for long time; if you look back between 2009 when it was launched and to today's price, it's a massive growth while fiat are meant to maintain their value but the purchasing power lies on how the government runs its economy.

[Ucy]

Fixing or limiting supply of a cryptocurrency isn't enough for its continuous price increase. It's more about the good and strong principles governing the cryptocurrency that can't easily be violated. Plus the awareness of what you can create or do with the cryptocurrency under the protection of the good principles makes it even more valuable.

It's like valuing a country so much because of the good law it's governed by that can't be easily broken.  You are willing to pay high price to invest in the country no matter how small the investment is, as it's almost certain that there won't be bad policy changes that negatively affects the investment, and you can rest your mind and focus on the development of the country if it's not very developed yet. If something changes against you, you are almost guaranteed to get justice.  
Compare that to a country with unfavorable law the administrators can arbitrarily change or use against you whenever they want. No matter how attractive the country is made to look, you won't be convinced. You may only be willing to pay less even if so much can be done in the country.

Bitcoin is more attractive due to its strong principles which are hardcoded into its system and very difficult to change. The principles combined, are more important in its valuation than just the supply limit. If one or more are broken it won't be valued as much. By the way, the more it's valued, the higher the price .
In regards to other cryptocurrencies, no matter their supply limits, if not hinged on good and strong principles that can't easily be violated, they won't be valued so much. Will be like the country with unstable administrators

[Bright0515]

I guess you're not just finding out that Bitcoin has a fixed supply of 21 million coins. Yes you read right. This fixed supply can be considered a pace setting move, but can have many effects in its users and the world economy. Unlike flat currency, the value of Bitcoin will keep increasing because more can not be printed into usage,

Yes bitcoin has a fixed supply and the amount is 21 million Bitcoin. Bitcoin will become valuable after the last bitcoin has been mined. Bitcoin has been a good store in value. After the last bitcoin is mined and no body is selling the value will increase more but if it is a fiat currency it will become valuless in the future if you save just your fiat currency. It is even better to use the fiat currency to buy a landed properties or invest with it instead to save it.

My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

Some crypto currency are already doing better to meet up the policy of bitcoin but they can not become valuable like Bitcoin

[Dave1]

My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

There are some crypto currencies that have adopted the fixed supply of Bitcoin, and yet they were not able to replicate what Bitcoin has done. However, in this market, if you try to observed, if you are not the prime mover then I think you will not be successful. You really need to be unique in order to gain the consensus of the market. And most altcoins try that, to go against the principle of becoming SoV, and yet they still failed. Plus, we've heard scarcity and limited supply, but it's hard to implement.

And without Bitcoin’s trustless decentralization and immutability, that supposedly copy cat is not that strong. And even fork of Bitcoin, the almost exact copy of itself, failed miserably. That's why Bitcoin is truly unique in itself, even if you copy it in code level, no one can duplicate it's success.

[Dunamisx]

The fixed supply we have in bitcoin has solved almost the problem with the fiat economy and inflation, instead of being affected by inflation, it increases in value over time and then we continue to experience the more of its adoption as a result over time, also in addition, having bitcoin fixed supply gives a more better edge over inflation because it does not lose value over time but instead increases the more and remained unaffected the way the local currency and economy is being affected.

[Youngrebel]

I guess you're not just finding out that Bitcoin has a fixed supply of 21 million coins. Yes you read right. 

This is not the first time we have been seeing or hearing this. You were a good ready in the forum, you must have seen it in the forum either in the beginners & help section or the bitcoin discussion board.

My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

I think every cryptocurrency which I have encountered had a limit on the supply. Ethereum has a limited supply and others so it is not some new to any active forum user.

[Webetcoins]

Bitcoins fixed supply is not the only thing that gives it the strength it has enjoyed thus. The fact that it inventor is also unknown and that it can't be linked to any known person or group of persons further strengthen and increase the trust that people have about bitcoin.

What makes bitcoin stand out is that it was not created as a model after any other coin. It came with it uniqueness and having stayed this long, it has become an household name for anything that comes after. They can model theirs to look like bitcoin and try to give it a fixed supply but only time will tell if it will do well in any where close to how bitcoin is currently doing.

That decentralization is definitely the reason more than anything else.

I mean a small inflation doesn't really matter to most currencies and wouldn't have mattered to bitcoin too, if it wasn't small, but like it started out at 20 million, and then grew  2% per year in supply, every year, forever, fixed rate, nothing more, just 2% more bitcoins every single year, just to promote to miners. That actually could have been better than what we have right now.

So the thing that makes it so strong, is the fact that nobody can touch it, it's decentralized, and nobody can make any changes on your account, they can't make your money worthless, they can't take it, they can't print 100 million more of it, it's just nobody is in charge, that's it.

[Agbamoni]

Unlike flat currency, the value of Bitcoin will keep increasing because more can not be printed into usage

Bitcoin is not a paper money that can be printed, correct yourself. Only fiat currency can be printed.

My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

Most cryptocurrencies have fixed supply while others are assured that some will be circulated from the dev with time. Bitcoin is different from other cryptocurrency not because of its fixed supply but because of its nature.

[The Sceptical Chymist]

My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

It is not something new anymore, there are many coins and tokens that have limited supply like bitcoin, but most of them are bump and dump. Also some like ethereum are created continuously without limited supply but part of it are also burned.

And that's why this statement is not necessarily true:

Unlike flat currency, the value of Bitcoin will keep increasing because more can not be printed into usage, furthermore scarcity and increased demand can lead to higher price level.

If, for example, something happened that was catastrophic to bitcoin--some black swan event that no one probably saw coming--its scarcity would mean diddly-squat.  I've heard people go on and on about the fixed supply guaranteeing bitcoin's price will just keep going up, but you're talking about supply and demand; note that there are two factors there, not just one.  Here's an example, Bitcore (BTX).  The supply is also capped at 21 million coins, yet just look at its price chart spanning all the way back to 2017:



Doesn't look anything like bitcoin, does it?  And it's obvious why: there's no demand for it, which goes the same for all the other shitcoins with fixed supply.  What exactly is there to discuss here?

[Fortify]

I guess you're not just finding out that Bitcoin has a fixed supply of 21 million coins. Yes you read right. This fixed supply can be considered a pace setting move, but can have many effects in its users and the world economy. Unlike flat currency, the value of Bitcoin will keep increasing because more can not be printed into usage, furthermore scarcity and increased demand can lead to higher price level. Unlike many developing countries currencies that lose value, the Bitcoin has already proven to be a very attractive alternate as a store of value function. My point is, do you think other crypto currencies will adopt such policies to keep up, or rival Bitcoin?

It has no effect for anyone who has educated themselves about the basic principal of bitcoin, it's like saying water is wet - extremely obvious for anyone who has encountered it. It's surprising that you think this is some kind of revelation when it is the very foundation of Bitcoin and what has in part made it so great. Unlike what you think, it could also eventually lead to it's downfall - while certain central banks print money like it is going out of fashion, others take a more moderate approach and understand that if you wanted to keep a currency stable when the population increases then the theory goes that you would print a little bit extra to help with circulation while helping to devalue it as a side benefit to the citizens of that country. The fact that Bitcoin is currently limited to 8 decimal places might eventually become a limiting factor in its usability.