Bitcoin's fixed supply and its deflationary characteristics are pivotal to its appeal. With a total cap of 21 million coins, Bitcoin is designed to mimic scarce resources like gold. This limited availability cultivates a paradigm where demand can outstrip supply, potentially leading to increased value over time. Unlike traditional currencies, which can be printed ad infinitum, Bitcoin’s issuance follows a predetermined schedule, halving roughly every four years. This mechanism inherently creates a deflationary environment, encouraging holders to retain their coins as they anticipate value appreciation. Therefore, the interplay between supply constraints and growing demand positions Bitcoin as a revolutionary asset in the financial landscape.
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