Crypto 101 with Jonathan · Lesson 4 of 8
21 million. That’s all there will ever be.
Bitcoin’s supply is fixed by its rules. Here is what that means in plain terms.
In this lesson
- There will only ever be 21 million bitcoin. The limit is written into the network’s rules.
- New bitcoin enters circulation on a schedule, and the amount created gets smaller over time.
- It is a supply rule anyone can check on the network, not a decision made by one company or one government.
Lesson notes
Most forms of money can be created in larger amounts when someone decides to. Bitcoin works differently. The rules of the network cap the total at 21 million. Not 21 million this year; 21 million ever.
New Bitcoin enters circulation on a schedule. Over time, the amount created gets smaller. It is a supply rule anyone can check on the network, not a decision made by one company or one government.
How early is this, really? Industry estimates put the number of people who own any Bitcoin at roughly 4 to 5 percent of the world. For comparison, about 6 to 7 percent of the world used the internet in the year 2000. Nobody knows what happens next, and this is not a prediction; it is a way to picture where adoption stands.
That fixed supply is why people talk about Bitcoin as “scarce,” and why they so often compare it with gold. That comparison is the next lesson.