The Supply of Bitcoin Is Limited. The Supply of Cryptos Isn't!

[AmXProX]

Yes the supply of bitcoin is limited to 21 million and other crypto currency have their own supply limit but they are not affecting each other. Alt coins can only affect bitcoin price whenever people prefer to have that alt coin instead of bitcoin but the number of their supply can't affect bitcoin.

[carlisle1]

So, if Bitcoin really takes off, we think we have an honest, state-free money.  No central bank, or anyone, can create bitcoins past the 21 million limit.

Correct?  In practice, no.

What Western central banks are doing now is getting us used to the idea of multiple cryptocurrencies being viable.  When they use their printed money to buy some new cryptos, their values go up.  

One simple example of how they can continue to expand their money supply is to have a basket of cryptos against which they 'manage' exchange rates with dollars, euro, etc.  Say, at first this basket contains 1 BTC, 10 ETH, and 100 LTC, and the Fed and US government have an official or unofficial policy of keeping this basket at the price of $100K, with a combination of keeping money printing and public debt under control, and selling the BTC/ETH/LTC in its vaults to scare savers away from moving their dollars into coins.

As time goes on, the Fed will want to create more dollars.  (As it always has.)  Then they will  buy up lots of new cryptocurrency XYZ (cheap) with their dollars, and raise the price of XYZ.  After XYZ has 'proven itself in the market with its technical superiority,' the Fed will add it to the basket, and the new basket will be priced at $120K.  Since the 'base money' has expanded by 20%, the number of dollars can also be expanded by 20%.

This is only one of many variations.  The Fed doesn't even have to declare a basket (as mentioned above.)  Whatever it buys will rise in value, and will become part of the 'basket'.  Whatever it abandons will die out.  It will have all the power.

The system will be no different from the early days of gold and silver standards, but with a new twist: there are an unlimited number of new gold and silver mines, and only central banks know where they are!

So, I'm still thinking that gold and silver, whose scarcity is secured by physics, rather than computer code, are the superior forms of money for improving our freedom from governments and bankers.

crypto wasn't just represented by bitcoin itself,although bitcoin is the pioneer and supreme doesn't necessarily means hes the only coin that can make this community alive,thats why theres lot of coin created after btc to have alternative to have another option when time comes all bitcoins has mined.so what we need here is let the other alts improve progress and rise so if the time comes we can still continue this process without only bitcoin dictating the market

[ThunderCatSteve]

Baskets or tied money have been around a long time.
the ECU is often forgotten.
All CBs will eventually issue their own cryptos, they're just playing a waiting game.
The volatility of BTC is only matched by the volatility of fiat currencies (those of us tied to GBP painfully know that - and the vol is definitely against us.
The only options, I see, in the future, is everyone actually creating / owning their own baskets, with XAU included.
XAU is heavily held by CBs for a good reason. They will continue to hoard it, and only sell when overstocked / market price is sky high eg Swiss CB several years ago.
John Reade, the strategist at the World Gold Council, is a good person to watch follow for XAU. He's worked at investment banks, HFs and now the World Gold Council, if you want someone to follow for Gold advice; I used to work with him and thoroughly recommend his unbiased opinions.

Yes it is true that the supply of bitcoin is limited and the reason is I think the production cost and mainly the electricity, because in many countries the electricity is very expensive and the miners cannot produce so much bitcoins. That’s why the supply of bitcoin is limited. Now the other countries where the cost of electricity and other elements are low people are looking to that to start mining bitcoin.

[jatin729]

Yes i really agree with that statement because Blockchain is a technology that runs crypto.
There are also so many crypto available other than bitcoin like ETH, Zcash, Litecoin, etc. So don't worry If bitcoin coin would mine full of 21 millions than we would have BCH and BTG, ETH and many more

[BobK71]

Other crypto currencies are helping bitcoin to gain it's price. Think of it as bitcoin being the gold and other crypto currencies as the fiat for each country, they have their own purpose and are just basing their prices on bitcoin because they have their own purposes and use.

Their own 'purpose and use' is to drive speculation and inflate crypto assets.  As I mentioned in the original post, that is the method the elites use to keep and grow their monetary power.

Even Ethereum, which claims to have a unique functionality by incorporating code execution into the blockchain, could use Bitcoin as its store of value.

[ajmapalo22]

Yes I agree that supply of cryptos are not limited and developers can always make another coin to introduce in the market though they cannot add the limited supply of bitcoin still they can make a coin to divert the market of bitcoin and somehow help it to maintain the circulation of cryptos in the market . I know like me many people are hoping that the number of supply of bitcoin can be increased so it can sustain the market demand and declare to be the worlds main currency

[BobK71]

It is true that the supply of bitcoin is only limited for about 21 million but the supply of other cryptocurrencies is not. There are many other cryptocurrency out there that have the potential to grow more and develop. That may happen in the future and may surpass the capability of bitcoin. In that case, we can still earn money through cryptocurrencies even though if the bitcoin's supply will run out.

The key question, to me, is who will have power in this system.  The more types of altcoins survive, the more power the elites have.

You don't know which cryptos to invest in.  The elites do.  Whatever they promote (by buying) will do well.

The more this happens, the more the crypto-based system will be like the 'fiat' system.

[dogandogru]

BTC is limited to 21 Million and also with controlled supply that mean 21 million will only be achieved in 2140. This is the positive expect of BTC. Unlike other pre-mined coins BTC is totally decentralized and price is only be controlled by users. Whereas pre-mined coins always have danger of having excessive supply at any time in order to control its price which is the biggest drawback.

[nightmanisrightman]

So, if Bitcoin really takes off, we think we have an honest, state-free money.  No central bank, or anyone, can create bitcoins past the 21 million limit.

Correct?  In practice, no.

What Western central banks are doing now is getting us used to the idea of multiple cryptocurrencies being viable.  When they use their printed money to buy some new cryptos, their values go up.  

One simple example of how they can continue to expand their money supply is to have a basket of cryptos against which they 'manage' exchange rates with dollars, euro, etc.  Say, at first this basket contains 1 BTC, 10 ETH, and 100 LTC, and the Fed and US government have an official or unofficial policy of keeping this basket at the price of $100K, with a combination of keeping money printing and public debt under control, and selling the BTC/ETH/LTC in its vaults to scare savers away from moving their dollars into coins.

As time goes on, the Fed will want to create more dollars.  (As it always has.)  Then they will  buy up lots of new cryptocurrency XYZ (cheap) with their dollars, and raise the price of XYZ.  After XYZ has 'proven itself in the market with its technical superiority,' the Fed will add it to the basket, and the new basket will be priced at $120K.  Since the 'base money' has expanded by 20%, the number of dollars can also be expanded by 20%.

This is only one of many variations.  The Fed doesn't even have to declare a basket (as mentioned above.)  Whatever it buys will rise in value, and will become part of the 'basket'.  Whatever it abandons will die out.  It will have all the power.

The system will be no different from the early days of gold and silver standards, but with a new twist: there are an unlimited number of new gold and silver mines, and only central banks know where they are!

So, I'm still thinking that gold and silver, whose scarcity is secured by physics, rather than computer code, are the superior forms of money for improving our freedom from governments and bankers.

Geez that post blew my mind away. You make a compelling argument and I can't think of a reason that can't happen. But one thing is that if it does happen at least crypto well be live and well it will be a different ball game from now. I gotta start getting on gathering precious metals together now 

[BobK71]

Geez that post blew my mind away. You make a compelling argument and I can't think of a reason that can't happen. But one thing is that if it does happen at least crypto well be live and well it will be a different ball game from now. I gotta start getting on gathering precious metals together now 

Thank you.

Now is probably a good time to get some gold and silver.  It's worth buying what has been kept artificially low and has a decent chance of breaking through the suppression.

If the elites succeed in using cryptos to drive inflation into the economy, it's hard for me to see how precious metals won't keep their purchasing power, or better, one way or another.

[kimochidesh]

Being supply limit, only 25BTC will be rewarded after solving a block which will soon be reduced to 12.5BTC after 420000 blocks been solve. So Bitcoin supply is very well managed and limited.

[BobK71]

crypto wasn't just represented by bitcoin itself,although bitcoin is the pioneer and supreme doesn't necessarily means hes the only coin that can make this community alive,thats why theres lot of coin created after btc to have alternative to have another option when time comes all bitcoins has mined.so what we need here is let the other alts improve progress and rise so if the time comes we can still continue this process without only bitcoin dictating the market

What you say is all nice and reasonable, but if my theory is correct, that the entire crypto market (including Bitcoin) has been promoted by the Western elites from day one, then altcoins are not a free market, and are only a tool for the elites to further consolidate their power.

[likeBTC]

That is because altcoins can create as many coins as they want, with the max supply as they want.
There is no fixed "supply" for all the other altcoins.
So yes, and the forks are unlimited too, but bitcoin will always have the 21 million.

[won99]

You are right. Now, many more coins had been rising. Sometimes, this situation make me confuse to choice coins which good future. So I always join in bitcoin, although bitcoin is limited I hopefully that bitcoin always rising in every time

[BobK71]

Yes it is true that the supply of bitcoin is limited and the reason is I think the production cost and mainly the electricity, because in many countries the electricity is very expensive and the miners cannot produce so much bitcoins. That’s why the supply of bitcoin is limited. Now the other countries where the cost of electricity and other elements are low people are looking to that to start mining bitcoin.

The real reason the supply of Bitcoin is limited, though, is to prevent some power center from abusing the system by issuing money and gaining 'free' wealth and power.

[BobK71]

You are right. Now, many more coins had been rising. Sometimes, this situation make me confuse to choice coins which good future. So I always join in bitcoin, although bitcoin is limited I hopefully that bitcoin always rising in every time

Bitcoin having limited supply is a factor in favor of going up.

[wantjokull]

I barely think that crypto currency are helping out the fait currency to grow in the value. Because these currencies are completely different part of the economic system and fiat resides at one part. The things is fiat will rise in the value only if the people pay back the taxes on the profits that are earned with the crypto currency. These taxes later on can be added as value to the government circulation and that can lead to healthy economic system. Do you know that when there is need that arises for the government to print more money then it means that it is actually not managing the fait balance properly. This could really lead to demonetisation of the current in first place and then financial crisis. So whatever you saying here is just 50 percent right but crypto's are not really helping the fiat in anyway yet.

[Fretcy]

The bitcoin supply is limited only to a 21 million bitcoins but every day new crypto currencies or altcoins are entering the crypto market and all altcoins are extendable and an upgraded version of bitcoins.

[BobK71]

I barely think that crypto currency are helping out the fait currency to grow in the value. Because these currencies are completely different part of the economic system and fiat resides at one part. The things is fiat will rise in the value only if the people pay back the taxes on the profits that are earned with the crypto currency. These taxes later on can be added as value to the government circulation and that can lead to healthy economic system. Do you know that when there is need that arises for the government to print more money then it means that it is actually not managing the fait balance properly. This could really lead to demonetisation of the current in first place and then financial crisis. So whatever you saying here is just 50 percent right but crypto's are not really helping the fiat in anyway yet.

The way that cryptos will potentially help the 'fiat' system is, as implied by the OP, that the elites will peg their currency against cryptos to strengthen it.

Yes, printing money can be a sign of financial stress, but it's part of the consequences of the current system.

[kidz now]

indeed cyrpto money has no rules on limiting the amount of circulation, this would make it difficult for some banks in the world to make crypto become real money if the local government doesn't make some rules for its own country.