The fixed supply of Bitcoin

Every day I get a chance to talk about crypto to someone. I'm glad that even during the bear market someone is really interested to know more about crypto and would like to invest in crypto. Bitcoin is still one of the top cryptocurrencies out there and even though the market trend is looking bearish, there is a high chance that our Bitcoin investment can turn out great in the coming years.

Today I was conversing with an old man who was talking to me about inflation and a few other financial topics. We have to understand how inflation is working and we shouldn't think that we are getting highly paid, we have to compare our payments with inflation as well. That's what he was explaining to me today. About 40 years back the value of the house he lives in was only about 500 $ in today's value. Nobody can buy a property that cheap today. Not just India but I don't think it is possible in any country. Today the value of the same property is close to 100k $ which is a drastic growth in the last 4 decades.

Source

Now when we talk about Bitcoin, we might be able to expect something similar. The fixed supply of Bitcoin is the most attractive selling point for Bitcoin. There are only 21 million coins out there. There are several ways in which the circulating supply might get affected. There can be a point where there would be very few sellers but more buyers as Bitcoin has become a pride coin these days. People consider holding Bitcoin as a moment of pride than holding them to sell it later.

In another 2 decades, there is a high possibility that people might lose a lot of Bitcoin. If you wonder how it would be lost, it can be through someone who kept a huge amount of Bitcoin with them but suddenly dead or lost their keys to the wallet. This is something that can easily happen. When that happens, those Bitcoins can be considered useless because nobody would have access to them. They can very well be regarded as coins that went out of supply already.

On Hive there is a concept called circulating supply and total supply. People can send their coins to null to remove them from the supply. I'm not sure if there is a similar concept on the Bitcoin blockchain too but nevertheless, there is a high chance that people might misplace their wallets and in the coming year many coins can go out of supply. These are some great things for a blockchain and cryptocurrency because it would reduce the circulating supply and people would still want more and demand would start increasing the price.

There are only two solid reasons why the Bitcoins supply might get reduced. As the mining difficulty increases and when it is time for Bitcoin to halve, the new coins coming into existence get reduced. The second thing is when the coin gets lost when it dies as a secret with dead people or during wallet key mismatches. It is said that during the early days, many people mined their bitcoins on their desktops and laptops and they threw away their desktops. It might have gone missing through that too. The remaining Bitcoins may not be full 21 million but there is still a lot left I would say.

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