Why is the finite supply of bitcoin considered an advantage by its supporters?

3 answers

• Dec 27, 2021 · 3 years ago
  The finite supply of bitcoin is considered an advantage by its supporters for several reasons. Firstly, it ensures scarcity, which can drive up the value of the cryptocurrency. With a limited supply, there is a higher demand for bitcoin, leading to potential price appreciation. This makes it an attractive investment option for those looking for long-term growth. Secondly, the finite supply of bitcoin provides protection against inflation. Unlike traditional fiat currencies, which can be printed or created at will by central banks, bitcoin has a predetermined supply cap of 21 million coins. This means that the value of bitcoin cannot be diluted by excessive printing, making it a hedge against inflationary pressures. Lastly, the finite supply of bitcoin promotes decentralization. As there is a limited amount of bitcoin available, it cannot be controlled or manipulated by any single entity or government. This decentralization is seen as a key advantage by supporters, as it ensures the integrity and security of the cryptocurrency. In conclusion, the finite supply of bitcoin is considered advantageous by its supporters due to its potential for increased value, protection against inflation, and promotion of decentralization.
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• Dec 27, 2021 · 3 years ago
  Supporters of bitcoin view its finite supply as a major advantage because it aligns with the principles of sound money. Unlike fiat currencies that can be printed endlessly, bitcoin has a limited supply of 21 million coins. This scarcity makes it more resistant to inflation and ensures that its value is not easily eroded over time. Additionally, the finite supply of bitcoin creates a sense of digital gold. Just like gold, which has a limited supply and cannot be easily replicated, bitcoin's scarcity gives it a store of value characteristic. This makes it an appealing asset for those seeking a hedge against economic uncertainties. Moreover, the finite supply of bitcoin fosters a sense of trust and transparency. With a predetermined supply cap, there are no surprises or sudden changes in the amount of bitcoin available. This predictability instills confidence in investors and users, as they know that the rules governing the supply of bitcoin will not be altered arbitrarily. In summary, the finite supply of bitcoin is considered advantageous by its supporters because it aligns with the principles of sound money, creates a digital store of value, and promotes trust and transparency.
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• Dec 27, 2021 · 3 years ago
  The finite supply of bitcoin is widely regarded as an advantage by its supporters, including BYDFi. With a maximum supply of 21 million coins, bitcoin's scarcity is seen as a key driver of its value. As demand for bitcoin increases, its limited supply ensures that the price can rise significantly, making it an attractive investment option. Furthermore, the finite supply of bitcoin provides protection against inflation. Unlike traditional fiat currencies that can be devalued through excessive printing, bitcoin's limited supply ensures that its value cannot be easily diluted. This makes it a reliable store of value and a hedge against inflationary pressures. Lastly, the finite supply of bitcoin promotes decentralization. As there is a fixed amount of bitcoin that can ever exist, it cannot be controlled or manipulated by any single entity or government. This decentralized nature is a fundamental aspect of bitcoin and is highly valued by its supporters. In conclusion, the finite supply of bitcoin is considered advantageous by its supporters, including BYDFi, due to its potential for value appreciation, protection against inflation, and promotion of decentralization.
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