5 Questions
Why is the supply of Bitcoin limited to 21 million?
The supply of Bitcoin is limited to 21 million to increase the value of each individual Bitcoin, adhere to the law of supply and demand, and avoid the risk of inflation.
What happens when all 21 million bitcoins have been mined?
When all 21 million bitcoins have been mined, no more bitcoins can be created, and the supply of Bitcoin will be fixed at 21 million. The value of Bitcoin will then be determined entirely by supply and demand.
How will Bitcoin miners be compensated when all 21 million bitcoins have been mined?
When all 21 million bitcoins have been mined, Bitcoin miners will most likely be compensated with transaction processing fees, as no new bitcoins can be created.
How are Bitcoin miners expected to be affected by Bitcoin reaching its upper supply limit?
The effect on Bitcoin miners depends on how the cryptocurrency evolves. If the Bitcoin blockchain processes many transactions, miners may still generate profits from transaction processing fees.
What determines the value of Bitcoin when its supply reaches 21 million?
When the supply of Bitcoin reaches 21 million, the value of Bitcoin will be determined entirely by supply and demand.
Test your knowledge of Bitcoin supply with this quiz. Explore the reasons behind the 21 million limit, the impact on value, and what happens when all bitcoins are mined. Dive into the laws of supply and demand, inflation risk, and the mathematical rules encoded in Bitcoin's system.
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