The current world population is nearly 7 billion now, and the maximum amount of BTC that can ever exist is 21 million. Going by this logic, every individual in the world can own only 0.03 Bitcoin.
By the rule of thumb, the lower the number of digital coins available to the public, the higher its value will become. Currently, Bitcoin is reaching its maximum value, pushing its price high and making it challenging to mine further BTC.
The total supply of BTC will be entirely exhausted in coming years that means if you hold more than 0.03 Bitcoin, you are immensely rich. Although to purchase 0.03 BTC today, you need 1760 USD, but it will cross 3 million USD in the future.
Bitcoin was designed such that there is a supply of 21 million, i.e., the upper limit of existence of BTC is fixed. This limit was set by Satoshi Nakamoto, the creator of Bitcoin. It is expected that the Bitcoin supply will be exhausted once the miners have unlocked the number of 21 million.
If you are wondering the reason for this finite supply, then there are some theories explaining this. According to the first theory, i.e., Money replacement theory, the limited maximum supply was intended to appreciate the value of Bitcoin over time. At the time when Bitcoin was created, the entire world’s money supply was $21 trillion. To replace all those money supplies, the worth of each Bitcoin would be $1 million.
Talking about the alternative theory, it is pretty clear that 21 million Bitcoin supply aims to ensure that the blocks are mined in a standard timeframe. It also seeks to decrease the amount of Bitcoin paid as rewards. Once all the Bitcoin supply is mined, the miners will not get the rewards in Bitcoin.
There is 1.9 million Bitcoin that have not been touched since a decade. Leaving these aside, a maximum of 19.1 million Bitcoins are available for millionaires. Keeping in mind that the total number of millionaires are reported nearly 51.9 million, each millionaire will have 0.36 BTC if shared evenly.
No matter if Bitcoin’s upper limit is a mathematical logic or philosophical gesture of Nakamoto, its limited supply indeed is an advantage. Keeping the crypto scarce ensures its value holds steady over the years. No doubt that Bitcoin is called Digital Gold due to its fixed amount in existence, just like gold.
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