{"id":9891,"date":"2023-06-28T19:13:38","date_gmt":"2023-06-28T19:13:38","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=9891"},"modified":"2022-05-16T21:24:45","modified_gmt":"2022-05-16T21:24:45","slug":"is-the-number-of-bitcoins-finite-advantages-and-disadvantages","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/is-the-number-of-bitcoins-finite-advantages-and-disadvantages","title":{"rendered":"Is bitcoin finite? Advantages and disadvantages"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/is-the-number-of-bitcoins-finite-advantages-and-disadvantages\/#is_the_number_of_bitcoins_finite\" >Is the number of bitcoins finite?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/is-the-number-of-bitcoins-finite-advantages-and-disadvantages\/#the_number_of_bitcoins_is_finite_advantages_and_disadvantages\" >The number of bitcoins is finite: Advantages and Disadvantages<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>One of the objectives of Bitcoin was establish itself as the alternative to the traditional banking system. How? Making bitcoin (BTC) a decentralized virtual currency. And one of the causes of this decentralization lies in its emission.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div><\/div>\n<h2><span class=\"ez-toc-section\" id=\"is_the_number_of_bitcoins_finite\"><\/span>Is the number of bitcoins finite?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Satoshi Nakamoto, the person or group of anonymous people who created the Bitcoin protocol, devised a decentralized system thanks to the autonomous\u00a0<b>issuance of controlled currency<\/b>. This is a feature highly valued by those people who dare to\u00a0<a href=\"https:\/\/www.bitnovo.com\/buy-bitcoins-online-en\">buy bitcoin online<\/a>.<\/p>\n<p>Bitcoins are released while granting rewards to miners who create validated transaction blocks every 10 minutes approximately. Of course, the number of BTC that is released is not always the same.<\/p>\n<p>Bitcoin software has established that\u00a0<b>with every certain number of validated blocks, the rewards are reduced by half<\/b>. Specifically, every 210.00 blocks the reward is reduced by 50% per mined block. This process is known in the crypto world as\u00a0<b>halving<\/b>.<\/p>\n<p>This \u201cpenalty\u201d tries to guarantee a constant supply of bitcoins, counteracting the increase in processing power. It would be a penalty equivalent to the advancement of technology that allows to process a larger volume of data in less time.<\/p>\n<p>In this way, the nature of bitcoin makes it a\u00a0<b>deflationary currency<\/b>: the issuance of bitcoins is fixed and limited.<\/p>\n<p>When this virtual currency was created, a limit of\u00a0<b>21 million BTC<\/b>\u00a0was established to avoid inflationary behavior in the currency. Therefore,\u00a0<b>the number of bitcoins is finite\u00a0<\/b>and nobody has complete and direct control over this virtual currency.<b>\u00a0It is a decentralized cryptocurrency<\/b>.<\/p>\n<p>Is estimated that in the year 2140 the last bitcoin will be issued. Then, only what is generated by the transaction itself will be obtained as a reward.<\/p>\n<div id=\"image_1641835691\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2019\/11\/BTC-MINAR-NUMERO-LIMITADO-1024x679.jpg\" sizes=\"(max-width: 1020px) 100vw, 1020px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2019\/11\/BTC-MINAR-NUMERO-LIMITADO-1024x679.jpg 1024w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2019\/11\/BTC-MINAR-NUMERO-LIMITADO-300x199.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2019\/11\/BTC-MINAR-NUMERO-LIMITADO-768x509.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2019\/11\/BTC-MINAR-NUMERO-LIMITADO.jpg 1042w\" alt=\"minar bitcoins online\" width=\"1020\" height=\"676\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2019\/11\/BTC-MINAR-NUMERO-LIMITADO-1024x679.jpg 1024w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2019\/11\/BTC-MINAR-NUMERO-LIMITADO-300x199.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2019\/11\/BTC-MINAR-NUMERO-LIMITADO-768x509.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2019\/11\/BTC-MINAR-NUMERO-LIMITADO.jpg 1042w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2019\/11\/BTC-MINAR-NUMERO-LIMITADO-1024x679.jpg\" data-sizes=\"(max-width: 1020px) 100vw, 1020px\" \/><\/div>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"the_number_of_bitcoins_is_finite_advantages_and_disadvantages\"><\/span>The number of bitcoins is finite: Advantages and Disadvantages<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Limited bitcoins entails a series of pros and cons.<\/p>\n<p>Advantages:<\/p>\n<ol>\n<li>The benefit of this currency decentralization is that\u00a0<b>bitcoins cannot be manipulated.<\/b><\/li>\n<li><b><\/b>Since infinite bitcoins cannot be generated,\u00a0<b>their value is not devalued<\/b>\u00a0and their price stabilizes. Unlike what happens with cash, in which central banks issue unlimited and devalue their value.<\/li>\n<\/ol>\n<p>Disadvantages::<\/p>\n<ol>\n<li>Bitcoin is\u00a0<b>volatile<\/b>: Due to its limited amount and its growing demand (more and more\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/bitcoin-mentions-and-transactions\/\">bitcoin transactions occur<\/a>).<\/li>\n<li>For miners,<b>\u00a0the rewards will be insignificant<\/b>. However, when the rewards for mining are very low, then the miners must live on commissions derived from confirming transactions.<\/li>\n<\/ol>\n<blockquote><p>\u201cOnce a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees and be completely inflation free\u201d<\/p>\n<p>Satoshi Nakamoto<\/p><\/blockquote>\n<p><em>Bitcoin: A Peer-to-Peer Electronic Cash System<\/em>\u00a0(P. 4)<\/p>\n<h4><strong>How many bitcoin are there in circulation?<\/strong><\/h4>\n<p>Currently,\u00a0<b>there are 18,041,462.5 bitcoins.\u00a0<\/b>This figure increases every 10 minutes, when new blocks are mined. Right now, each new block adds 12.5 bitcoins in circulation.<\/p>\n<p>It is expected that the next Bitcoin halving will be in May 2020. From then on, each block will be a reward of 6, 25 Bitcoin.<\/p>\n<h4><strong>How many bitcoins are left to be mined?<\/strong><\/h4>\n<p><b>There are 2,958,537.5 bitcoins left to be mined<\/b>. Approximately 14% of total bitcoins.<\/p>\n<p>Exciting the bitcoin world! However, this is just one of many cryptos you\u2019ll find in the market. Discover\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-many-cryptocurrencies-exist\/\">how many cryptocurrencies exist today<\/a>\u00a0and encourage yourself to\u00a0<a href=\"https:\/\/www.bitnovo.com\/en\/buy\/bitcoin\/\">buy cryptocurrency<\/a>\u00a0faster and safely.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>One of the objectives of Bitcoin was establish itself as the alternative to the traditional banking system. How? Making bitcoin (BTC) a decentralized virtual currency. And one of the causes of this decentralization lies in its emission. Is the number of bitcoins finite? Satoshi Nakamoto, the person or group of anonymous people who created the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7888,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9891","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-criptomonedas"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/9891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=9891"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/9891\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7888"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=9891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=9891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=9891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}