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Why is Bitcoin limited (why is Bitcoin not infinite)

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Why is Bitcoin limited (why is Bitcoin not infinite)

Why is Bitcoin limited? Editor’s note: This article is from Caiyun Blockchain (ID: cybtc_com) and is authorized to be reprinted by Daily Planet The total amount of Bitcoin is limited, but it has been used by some unscrupulous elements for profit. Many people even express dissatisfaction with the extremism of Bitcoin, believing that Bitcoin can only be “air”, but in reality, this does not make any sense Why is Bitcoin infinite? Because it is a digital currency network that allows people to freely use it and has a network composed of many different participants, it cannot be infinitely expanded and self maintained. If one wants to create a true, borderless, decentralized, and tamper proof asset or value storage method, then it must be issued at a very low price

In this case, because of its predictability, its transaction speed is much faster than before, and its usage scenarios are not wide enough, so Bitcoin cannot become a means of payment or a medium of exchange in the global economy In order to achieve this goal, central banks around the world have launched various central bank digital currencies. These CBDCs have been in existence for a long time, but they have not yet been used in daily commercial use cases, such as cross-border remittances With more and more financial institutions accepting the adoption of encryption technology and governments actively embracing it as a primary payment tool, Bitcoin is receiving regulatory attention – the US Congress has approved a new bill that will allow all individuals to provide services to the country through encryption technology. According to the 2020 New York Federal Register, this bill will come into effect at the end of 2021, aiming to regulate the encryption industry. The law also stipulates that Cryptocurrency miners must obtain a license to mine Cryptocurrency and must comply with AML/KYT rules to prevent illegal activities. However, despite this, the 2020 New York Federal Register still warns investors to be aware of potential money laundering risks. The 2019 New York State Consumer Report (NYTimes) said: “Bitcoin and other Cryptocurrency may face similar situations”

Unlike other Fiat money, Bitcoin is not the only virtual commodity that can be used for international transfers, nor is it used for payment and settlement systems or cash transactions like the US dollar. Although Bitcoin can be used in multiple jurisdictions, such as exchanges and banks in countries such as Switzerland, it still does not have any practical programs

Why is Bitcoin not infinite

According to a recent blog article, Bitcoin had reached 21 million units when the Genesis block was born on November 12, 2017.

. But now, due to the increasing difficulty of mining, the network capacity is increasing (according to statistics, the current total network computing power is 130.5TH/S), so its total market value is only about $200 million So why is it said that in the first version of 2009, each transaction pair could achieve an infinite supply Because every time a new blockchain is created, a transaction is generated, which consumes a large amount of electricity and must wait for a period of time to be confirmed; At the same time, a large amount of new coins will be generated after each update and the old tokens will be destroyed to maintain the running time on the chain. Without such a system, there can never be a guarantee that transactions will not ultimately occur. This means that the transaction cannot continue until the end of the entire transaction, so the price of Bitcoin is fixed and unchanging! This is not to say that the price of Bitcoin cannot remain stable all the time, but it believes that only with price fluctuations will more funds enter the market.

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