What is the role of Bitcoin's scarcity and predictable issuance schedule in its long-term value?

What is the role of Bitcoin's scarcity and predictable issuance schedule in its long-term value?

Blog Article

Bitcoin's scarcity and predictable issuance schedule are arguably its most fundamental attributes, playing a pivotal role in its long-term value proposition and significantly influencing the bitcoin price today. With a hard cap of 21 million coins that will ever be mined, Bitcoin is a deflationary asset, unlike fiat currencies which can be printed infinitely. Its issuance schedule is entirely transparent and fixed, with new Bitcoin entering circulation at a steadily decreasing rate, cut in half approximately every four years during the halving events. This engineered scarcity, combined with growing global demand, creates a powerful supply-side pressure that is designed to drive its value upwards over time. This predictable and diminishing supply, akin to digital gold, is a core reason why many investors view Bitcoin as a superior long-term store of value, particularly in an era of increasing monetary expansion.