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Why is the supply curve of Bitcoin considered to be limited?

avatarTour BranchNov 23, 2021 · 3 years ago1 answers

Can you explain why the supply curve of Bitcoin is considered to be limited? What factors contribute to this limited supply?

Why is the supply curve of Bitcoin considered to be limited?
Bitcoin
Cryptocurrency
Supply Curve

1 answers

  • avatarNov 23, 2021 · 3 years ago
    The supply curve of Bitcoin is limited because it is a fundamental aspect of its design. Bitcoin was created with the intention of being a decentralized digital currency that is not subject to the control of any central authority. By limiting the supply of Bitcoin, its creators aimed to prevent inflation and maintain the currency's value over time. This limited supply also creates scarcity, which can drive up the price of Bitcoin. Additionally, the limited supply of Bitcoin makes it a store of value, similar to gold. Investors often view Bitcoin as a hedge against inflation and a way to diversify their investment portfolios.

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