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Debashree Patra
Debashree Patra
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- Dec 19, 2024 09:23 UTC
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Is Bitcoin’s 21M Supply Limit a Lie? BlackRock’s Controversial Take
Despite highlighting Bitcoin's 21 million coin limit, BlackRock admitted there's "no guarantee" this cap won't change.
Altering the cap would require a "hard fork," splitting the network. This is highly controversial.
Removing the cap could ensure miners' incentives but would undermine Bitcoin's core principle of scarcity.
Bitcoin’s fixed supply of 21 million coins has always been a key reason for its value, setting it apart from traditional currencies that can be printed endlessly. But a recent video from BlackRock has stirred controversy, raising questions about whether this cap is truly unchangeable.
What Did BlackRock Say?
In a recent explainer video shared by Michael Saylor, BlackRock highlighted Bitcoin’s fixed supply as a key feature, saying it helps control inflation and maintain value. However, they added a surprising disclaimer: there’s “no guarantee” that the 21 million won’t change.
This statement has sparked instant reactions, with some wondering if Bitcoin’s scarcity is really as secure as people think. Critics like Joel Valenzuela even claimed that this could be part of a plan to change Bitcoin’s rules.
Could Bitcoin’s Supply Limit Be Changed?
Technically, it’s possible—but extremely challenging. Changing the 21-million cap would require a major update called a “hard fork.” This would split Bitcoin’s blockchain into two versions: one with the original limit and one without it.
However, many believe that a Bitcoin without its supply cap wouldn’t be Bitcoin anymore. As Bitcoin developer Super Testnet explained, “The cap defines Bitcoin. Without it, it’s just something else entirely.”
Why Is This Debate Happening?
The debate largely revolves around miners, who play a crucial role in securing the Bitcoin network. Miners are rewarded with newly created Bitcoin for their work, but these rewards halve every four years. By 2140, all 21 million coins will have been mined, leaving miners to rely only on transaction fees.
Some worry that transaction fees alone might not provide enough incentive for miners in the future. Removing the cap could ensure miners remain profitable, but this would come at the cost of Bitcoin’s defining feature: its scarcity.
A History of Resisting Change
Bitcoin’s community has a strong history of resisting significant changes. For example, during the 2016-2017 block size debates, miners proposed increasing the block size to improve scalability. Although 95% of miners supported the change, the broader community rejected it, proving that altering Bitcoin’s rules isn’t easy.
For now, Bitcoin’s 21-million cap remains its defining characteristic. Any move to change this limit would likely face fierce opposition and could undermine trust in the cryptocurrency.
As Bitcoin continues to rise, even with occasional short-term dips, tampering with its foundation could destabilize not just Bitcoin but the entire crypto market.
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FAQs
A hard fork splits the Bitcoin network into two, one keeping the original supply cap and the other potentially removing it.
The 21 million cap ensures scarcity, which is central to Bitcoin’s value and distinction from traditional inflationary currencies.
Yes 
No 
