Why Is Bitcoin Limited To 21 Million?

Bitcoin is a limited resource. There will only ever be 21 million coins, and as the supply grows over time, the value falls. If you think this is not a problem, consider how hard it was to mine 1 million dimes in 1941. It’s much easier to buy a million bitcoin today than it was to earn those 1 million dimes back then—with almost no effort involved at all!

So why create bitcoins out of thin air? What utility does their existence provide? The story goes something like this: In 2008, programmer Satoshi Nakamoto published a paper describing Bitcoin: A Peer-to-Peer Electronic Cash System. In that paper he described an electronic payment system based on cryptographic proof instead of trust, allowing anyone with an Internet connection to transact without intermediaries such as banks. This idea appealed greatly to libertarians and anarchists who saw commerce as one of mankind’s most useful functions—the widely cited proposition that money should “advance liberty.” And so people from around the world flocked from various walks of life (most notably computer scientists) to work at open-source software projects inspired by Nakamoto’s vision; they joined mailing lists and began discussing economic systems largely outside our current financial institutions (such as banks). One hot topic of conversation was whether decentralized peer-to-peer networks could withstand denial-of-service attacks or government interference; others wondered what would happen if currencies were created that lost 10% per year.

An obvious use for bitcoins