Is there a limit to how many Bitcoins can be created or mined in total?
Yes, there is a limit to how many Bitcoins can be created or mined in total.
This limit is set by the Bitcoin protocol and is known as the “Bitcoin supply cap”. The Bitcoin supply cap is set at 21 million coins, meaning that no more than 21 million Bitcoins can ever be created or mined. The Bitcoin protocol was designed to mimic the scarcity of gold, which has a finite supply.
By setting a hard limit on the number of Bitcoins that can ever exist, it ensures that the value of each individual Bitcoin will remain high over time. This also helps to prevent inflation, as it prevents new coins from entering circulation and devaluing existing coins. In addition to the hard limit on the number of Bitcoins that can exist, there are also several other factors that influence how many Bitcoins are in circulation at any given time.
For example, some people may choose to hold onto their coins rather than spend them, while others may lose access to their wallets due to forgotten passwords or other technical issues. As a result, the actual number of Bitcoins in circulation at any given time may be lower than the maximum supply cap of 21 million coins.
