Why Bitcoin instead of euro's…

Why Bitcoin instead of euro's or dollars:

Bitcoin is designed to have a limited supply, which is one of its defining features. This scarcity is ingrained into Bitcoin's protocol and is governed by several factors:

1. 21 Million Cap: The total number of bitcoins that will ever exist is capped at 21 million. This limit was set by Bitcoin's creator, Satoshi Nakamoto, and is coded into the Bitcoin software. The limit is designed to mimic the supply curve of precious metals like gold, which also have a finite supply.

2. Block Rewards and Halving Events: When Bitcoin was first launched in 2009, miners were rewarded with 50 bitcoins for every block they mined. This reward is essentially the mechanism through which new bitcoins are created. However, approximately every four years, this block reward is halved. This event is known as a "halving." In 2012, the reward was reduced to 25 bitcoins, and it continued to halve in subsequent years. As of my last knowledge update in September 2021, the most recent halving occurred in May 2020, when the block reward was reduced to 6.25 bitcoins. This process will continue until the maximum supply of 21 million bitcoins is reached, which is expected to happen around the year 2140.

3. Difficulty Adjustments: Bitcoin's protocol adjusts the difficulty of mining to ensure that blocks are added to the blockchain approximately every 10 minutes. If more miners join the network and the hash rate increases, the difficulty of solving the mathematical problem will also increase, making it harder to mine bitcoins. This mechanism ensures that bitcoins are not mined too quickly as the network grows.

4. Loss of Bitcoins: Some bitcoins are lost forever due to reasons such as lost private keys or deliberate burning of coins. This reduces the effective supply of bitcoins available.

5. Holding Behavior (HODLing): Many individuals and entities choose to hold onto their bitcoins as a long-term investment, based on the belief that their value will increase over time due to its scarcity. This reduces the number of bitcoins actively circulating in the market.


The scarcity of Bitcoin is an essential factor contributing to its value, similar to precious metals. By having a finite supply, Bitcoin is designed to be resistant to inflation, in contrast to fiat currencies which can be printed in unlimited quantities by governments. This scarcity has played a role in Bitcoin's price increases over time, as demand has continued to grow while supply remains limited.