Understanding Bitcoin’s Scarcity – Bitcoin Magazine

Bitcoin is obviously scarce. And it seems to be becoming scarcer over time.  But, perhaps due to the current bull run, doubts about both of these propositions are seemingly on the rise among bitcoin skeptics. Criticisms come in a few different flavors. The main one that I have seen argues that bitcoin cannot be scarce because it is highly divisible. Recently, that particular line of reasoning was subject to some particularly colorful discussions on Twitter.  In this article, I want to clarify bitcoin’s scarcity. Let’s start with what the concept…

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21M Bitcoin and the Promise of Scarcity

In Bitcoin, the promise of a limited supply is great. This was one of the biggest things that initially appealed to me when I heard about Bitcoin. “No more than twenty one million bitcoins will ever exist!” But can this promise be kept in the long run? Has the Promise Already Been Broken? Some would say that Bitcoin’s scarcity has already been violated since forking creates multiples of the 21m coin limit, with each chain’s token commanding a different market price. But setting aside this concern over forks, let’s focus…

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