Strong supporters of bitcoin (BTC) often point to the fact that it has a specific cap for its supply. Indeed, the latter, set at 21 million BTC, makes the flagship crypto rarer than any fiat currency. It is then highlighted when it comes to explaining how bitcoin can be a store of value. But, for some detractors, not everything that is said about the flagship crypto should be trusted.
The Bitcoin Supply Cap: A Bad Satoshi Joke?
Jamie Dimon, the CEO of JP Morgan, was very critical of crypto, especially bitcoin (BTC), during a recent show. The leader then intervened on CNBC’s Squawk Box. The latter’s account reported Dimon’s comments in a tweet this January 19. It appears that the CEO of JP Morgan has said that Bitcoin constitutes “exaggerated fraud“. He added : “Crypto Is A Decentralized Ponzi Scheme… It’s A Stone Of Companion“.
At the same time, Dimon indicated that he don’t believe that the supply of bitcoins is really capped at 21 million. In this regard, he said:How do you know it ends at 21 million? Have you all read the algorithms? Do you all believe it? I don’t know, I’ve always been skeptical of this stuff“. “Maybe it’ll get to 21 million and Satoshi’s picture will pop up and laugh at y’all“, underlined the CEO of JP Morgan.
What we know about the algorithms about the BTC supply limit
Bitcoin (BTC) algorithms are open source and anyone can view them regardless of geographic area. The various people who have viewed them state that there is actually a set limit for the supply of BTC. The ceiling code in question would only hold on 5 lines.
That said, the algorithms indicate that the Bitcoin supply issuance rate will halve every 210,000 blocks. The halving therefore takes place approximately every four years. It is expected to take place 33 times before the bitcoin mining reward drops to zero.
It appears that Bitcoin algorithms can be changed as long as users give their consent. Moreover, some estimate that the Bitcoin community will eventually change the code to produce more than 21 million BTC.
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