Bitcoin Forum
December 05, 2021, 11:26:25 AM *
News: Latest Bitcoin Core release: 22.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Higher demand,limited supply  (Read 143 times)
Kez1817
Member
**
Offline Offline

Activity: 1008
Merit: 17

www.cd3d.app


View Profile
December 10, 2017, 06:45:26 AM
 #1

           There is only a 21 million fixed supply of bitcoin,and 6 million  are remaining available to mine.
           Why there is a limited supply of bitcoin while the demand is so high?

1638703585
Hero Member
*
Offline Offline

Posts: 1638703585

View Profile Personal Message (Offline)

Ignore
1638703585
Reply with quote  #2

1638703585
Report to moderator
1638703585
Hero Member
*
Offline Offline

Posts: 1638703585

View Profile Personal Message (Offline)

Ignore
1638703585
Reply with quote  #2

1638703585
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
mk4
Legendary
*
Offline Offline

Activity: 1876
Merit: 2427


🔐 NotYourKeys.org 🔑


View Profile WWW
December 10, 2017, 06:49:33 AM
 #2

The supply is capped at 21 million in purpose for it to be sort of deflationary; not like most fiat whereas the value of that certain currency goes lower and lower every year/every few years due to the government printing more and more money.

Why 21 million you say? Here's a good explanation:
Quote

Here's a mathematical explanation:

Calculate the number of blocks per 4 year cycle:

6 blocks per hour
* 24 hours per day
* 365 days per year
* 4 years per cycle
= 210,240
~= 210,000

Sum all the block reward sizes:

50 + 25 + 12.5 + 6.25 + 3.125 + ... = 100

Multiply the two:

210,000 * 100 = 21 million.

Economically, because the currency is effectively infinitely divisible, then the precise amount doesn't matter, as long as the limit remains fixed.
source: https://bitcoin.stackexchange.com/questions/8439/why-was-21-million-picked-as-the-number-of-bitcoins-to-be-created

aanbudi
Full Member
***
Offline Offline

Activity: 140
Merit: 100



View Profile
December 10, 2017, 07:11:48 AM
 #3

Limited supply and High demand is a natural thing for something of value. And obviously, due to the limited number, many people want to hoard Bitcoin, before the total supply is met. Because If the total supply of 21 million Bitcoin has been reached, the price of Bitcoin will rise dramatically. Probably faster than the current price increase.
hkdfgkdf
Full Member
***
Offline Offline

Activity: 340
Merit: 195


Graphics/Signature Designer https://bit.ly/2Q1AOrY


View Profile
December 10, 2017, 07:14:09 AM
 #4

Why 21 million you say? Here's a good explanation:
Quote

Here's a mathematical explanation:

Calculate the number of blocks per 4 year cycle:

6 blocks per hour
* 24 hours per day
* 365 days per year
* 4 years per cycle
= 210,240
~= 210,000

Sum all the block reward sizes:

50 + 25 + 12.5 + 6.25 + 3.125 + ... = 100

Multiply the two:

210,000 * 100 = 21 million.

Economically, because the currency is effectively infinitely divisible, then the precise amount doesn't matter, as long as the limit remains fixed.
source: https://bitcoin.stackexchange.com/questions/8439/why-was-21-million-picked-as-the-number-of-bitcoins-to-be-created

I agree, very good explanation. Bitcoins are like gold in real life. Golds have limited supply and have a high value in market. It is also said that all bitcoins will be mined in year 2140 so it will be a long run for bitcoins. We also expect to its price will continue to pump as its supply is getting lower. There are still 6 million bitcoins to mine so far.

datodota002
Full Member
***
Offline Offline

Activity: 224
Merit: 101



View Profile
December 10, 2017, 07:17:33 AM
 #5

Thats the beauty of bitcoin at the first time bitcoin released, the price is not high but now it's more than gold. it's because the high demand and limited supply of bitcoin. if now bitcoin supply add. it will make bitcoin price down very fast
coolcountry
Member
**
Offline Offline

Activity: 154
Merit: 11


View Profile
December 10, 2017, 07:19:16 AM
 #6

The value of something increases the rarer it is. If there were 450 million coins, then the price of the average coin would be devalued. So the limited supply actually pushes bitcoin's price up, which is a good thing.

reck1ess
Member
**
Offline Offline

Activity: 350
Merit: 30


View Profile
December 10, 2017, 07:25:35 AM
 #7

It has limited supply in order to maintain its value. The more the supply the more the value gets lower. Same as when government prints more money, the value becomes lower.

superjeyy
Full Member
***
Offline Offline

Activity: 182
Merit: 147


View Profile
December 10, 2017, 07:26:39 AM
 #8

The supply is capped at 21 million in purpose for it to be sort of deflationary; not like most fiat whereas the value of that certain currency goes lower and lower every year/every few years due to the government printing more and more money.

Why 21 million you say? Here's a good explanation:
Quote

Here's a mathematical explanation:

Calculate the number of blocks per 4 year cycle:

6 blocks per hour
* 24 hours per day
* 365 days per year
* 4 years per cycle
= 210,240
~= 210,000

Sum all the block reward sizes:

50 + 25 + 12.5 + 6.25 + 3.125 + ... = 100

Multiply the two:

210,000 * 100 = 21 million.

Economically, because the currency is effectively infinitely divisible, then the precise amount doesn't matter, as long as the limit remains fixed.
source: https://bitcoin.stackexchange.com/questions/8439/why-was-21-million-picked-as-the-number-of-bitcoins-to-be-created

The representation mjglqw is simple yet very valid. The amount of Bitcoin is fixed and limited which makes it a precious asset to own. It is due to this finite amount that more people want to acquire Bitcoin because every piece of it is truly valuable. Supply and demand shares an indirectly proportional relationship as proven by having lesser supply if there is more demand. With lesser supply on the other hand comes greater value.
immunitychilly
Newbie
*
Offline Offline

Activity: 11
Merit: 0


View Profile
December 17, 2017, 11:16:54 AM
 #9

Having a limited supply is certainly a big reason why bitcoins are being valued to a huge amount. Since it is limited a lot of people want to get invest in while there are still coins to mine.
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!