The 21 Million Cap: Why Bitcoin’s Scarcity Is Its Killer Feature

Unlike fiat currencies that can be printed at will, Bitcoin has a hard limit of 21 million coins written into its code. New supply enters through mining and is cut in half roughly every four years at the halving, slowing issuance to a trickle.

This predictable scarcity underpins the “digital gold” thesis. Whether scarcity alone drives long-term value is debated, but the transparency of Bitcoin’s monetary policy is something no central bank can match.