Can Bitcoin’s hard cap of 21 million be changed?
Bitcoin's hard cap of 21 million coins is a defining feature promoting scarcity and acting as digital gold. This limit, established by Satoshi Nakamoto, means that unlike fiat currencies, no additional coins can be produced, preserving its value. The fixed supply contrasts sharply with other assets like Ether and Solana, which do not share the same status. Discussions around altering this cap have emerged, especially concerning the long-term incentives for miners post-21 million cap, but changing it faces staunch opposition from the community who regard it as a core principle of Bitcoin. Any attempt to amend this cap could lead to a significant loss of trust among investors and a potential market reaction resulting in a sell-off. Such radical changes could also trigger a hard fork, dividing the community and leading to competing versions of Bitcoin. Historical precedents, such as the 2017 block size debates, illustrate the resistance to changes in Bitcoin’s code. In summary, while technically feasible, changing Bitcoin’s supply cap would be met with overwhelming resistance, jeopardizing the foundational principles of trust and scarcity that underpin Bitcoin.
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