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Bitcoin\“s controlled supply is one of its most fundamental features, with a hard cap set at 21 million coins. This limit is enforced by the Bitcoin protocol and is a key differentiator from traditional fiat currencies, which can be printed without restriction.
The controlled supply mechanism is achieved through the process of mining and the halving events that occur approximately every four years. These halvings reduce the block reward given to miners, gradually slowing the rate of new Bitcoin creation until the maximum supply of 21 million is reached.
According to bitcoin.org, this fixed supply makes Bitcoin a deflationary asset, similar to digital gold. The scarcity created by the 21 million cap is designed to preserve value over time and protect against inflation that plagues government-issued currencies.
The Bitcoin network\“s controlled supply ensures that no central authority can manipulate the money supply, making it a truly decentralized and predictable monetary system. This feature has been core to Bitcoin\“s value proposition since its inception and continues to attract investors seeking protection from currency devaluation. |
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