We now know why there’s a limit on the number of Bitcoin, but why 21 million? According to an email shared by early Bitcoin developer Mike Hearn, the figure was “an educated guess.” Nakamoto said in the email, “My choice for the number of coins and distribution schedule was an educated guess. It was a difficult choice, because once the network is going, it’s locked in and we’re stuck with it. I wanted to pick something that would make prices similar to existing currencies, but without knowing the future, that’s very hard.”

Nakamoto explained that he picked a number “in the middle” because it would work whether Bitcoin remained niche or became widespread. “I ended up picking something in the middle,” the creator explained. “If Bitcoin remains a small niche, it’ll be worth less per unit than existing currencies. If you imagine it being used for some fraction of world commerce, then there’s only going to be 21 million coins for the whole world, so it would be worth much more per unit.”

(Excerpt) Read more Here | 2020-08-13 07:34:00
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