Saturday, March 25, 2023
No Result
View All Result
CONTACT
First Crypto News
  • News
  • Bitcoin
  • Ethereum
  • Industry
  • Market Updates
  • Price
  • Coins
  • Press Release
  • News
  • Bitcoin
  • Ethereum
  • Industry
  • Market Updates
  • Price
  • Coins
  • Press Release
No Result
View All Result
First Crypto News
No Result
View All Result

Every Wondered Why Satoshi Nakamoto Chose 21 Million as the Limit for Bitcoin?

by firstcryptonews
July 14, 2019
in News
Every Wondered Why Satoshi Nakamoto Chose 21 Million as the Limit for Bitcoin?

As we inch closer to the next Bitcoin halving, it’s necessary to think about the specific design of the coin as done by Satoshi Nakamoto. Specifically, why was 21 Million the set figure for Bitcoin mining?

Bitcoin was the first fully decentralized digital asset to hit the market. Created a decade ago by Satoshi Nakamoto, it’s currently the world’s biggest cryptocurrency with a market cap of $219 billion and almost 70% dominance at writing time.

Satoshi put a lot of thought and work into creating Bitcoin but a decade later, there are still two unknowns about this journey. Firstly, no one knows who Satoshi Nakamoto really is. Whether the name belongs to one person, male or female or if it’s a moniker for a group of developers is unknown.

Also, Satoshi set design for Bitcoin, limiting its production to 21 million. In other words, there will never be more than 21 million Bitcoins produced except something changes. This leads us to the second unknown – no one really knows why a 21 million limit was set.

Bitcoin’s Fixed Supply
It’s pretty easy to understand why there is a finite supply set for Bitcoin as it helps prevent inflation. Bitcoin is mined as block rewards for the miners and is set to halve after every 210,000 blocks which happens over a four-year period. Currently, miners earn 12.5 Bitcoins per block and by May 2020, it will be reduced to 6.25. This is a commendable way to control the arbitrary supply of the asset but still doesn’t explain why exactly the “21 million” figure was chosen.

Satoshi Wanted Similarities Between Bitcoin and Fiat
There is one pointer to the figure as seen in a correspondence between Nakamoto and Mike Hearn, a software developer. According to the email, Satoshi says the design for the “number of coins and distribution schedule was an educated guess” and also a “difficult choice.”

Basically, Satoshi tries to explain a desire for some similarity between Bitcoin and Fiat currencies even though the difficulty of that due to possible changes to both currencies in the future was also considered. However, regardless of the intended similarity, Satoshi believed that adoption could drive Bitcoin to be worth a lot more per unit.

The above, on some level, explains a little about what Nakamoto had in mind especially with regards to fixing a limit but the real thought or calculation that resulted in 21 million is still a little lost on the cryptosphere.

The Community Weighs In
Over the last few years, there have been a lot of guesses as to the 21 million figure and whether there’s a real meaning or calculation that birthed it. Some have offered mathematical explanations while some others have expressed more random thoughts.

Allen Ewart, a fintech founder and editor posited that “21 million” might be deeper than it looks. For him, “the number 21 is considered to be a creative spirit.”

There are some others who think it’s unnecessary to try figuring out what brought about the exact figure. To them, the main point to be made here is the fact that it’s fixed and the exact number, whether 21 million or 210 million is therefore ultimately irrelevant.

Perhaps the most intriguing explanation is a mathematical one offered by a member of the StackExchange forum. According to the post, the number of blocks per cycle can be gotten by multiplying 6 (blocks produced every hour) by 24 (hours in a day) by 365 (number of days in a year) and then by 4 (number of years in a cycle.) This gives 210,240 which is then rounded down to 210,000.

Furthermore, addition of all the block rewards from inception – 50+25+12.5+6.25+3.125 gives 96.875 which is rounded up to 100.

Further multiplication of both numbers (210,000×100) is 210 million.

However, it’s important to note that this explanation was created after Satoshi already set the 21 million figure and the maths only satisfies the figure but doesn’t really answer the question.

Maybe one day Satoshi Nakamoto will reveal their true identity (-ies) and then we can ask all the puzzling questions. But until then, all we have is conjecture and the correspondence that calls it “an educated guess.”

Related Posts

Interest-Bearing Bonds-Backed Tokens: Generate yield using tokens backed by sovereign bonds

Interest-Bearing Bonds-Backed Tokens: Generate yield using tokens backed by sovereign bonds

by firstcryptonews
January 16, 2023
0

Vaduz, Liechtenstein. Decentralized Finance Innovator Mimo is launching “KUMA Protocol”: the first DeFi protocol issuing tokens backed by regulated NFTs, themselves...

The Connecter 4.0- The World’s First Decentralized Bottom-Up Economy

The Connecter 4.0- The World’s First Decentralized Bottom-Up Economy

by firstcryptonews
June 18, 2022
0

The Connecter is an entire decentralized platform comprising of 4 fundamental elements that together create an ecosystem- The Connecter banking,...

DX Cup – Soccer Metaverse

DX Cup – Soccer Metaverse

by firstcryptonews
March 31, 2022
0

Despite the varying geographical and political situations in different parts of the world, if there’s anything that has remained consistent...

KAZANO The currency that changes the market rules of the crypto in the world

KAZANO The currency that changes the market rules of the crypto in the world

by firstcryptonews
January 22, 2022
0

KAZANO Currency Brief Overview 1 What is the casino currency 2 What he came to solve 3 What market is...

unime

Why you’re a LOSER if you use Facebook!

by firstcryptonews
October 12, 2021
0

Facebook, Instagram and the widely-used WhatsApp messaging service all broke at the same time. Complete radio silence. The reason is...

Top Secure Encrypted Messaging Apps in 2021

Top Secure Encrypted Messaging Apps in 2021

by firstcryptonews
October 6, 2021
0

Are you using the secure messaging app? Specifically, one of those apps uses encrypted messaging. It will help you prevent...

Next Post
FED Chairman: Facebook’s Libra Cannot Go Forward!

FED Chairman: Facebook’s Libra Cannot Go Forward!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

The Lucky Cat — A new beginning

The Lucky Cat — A new beginning

1 year ago
Phaeton

Phaeton Announces IEO Launch on LAToken & P2PB2B

2 years ago
MNTG Wallet

MNTG Wallet – The Next Generation Blockchain Solution

2 years ago
Coinbase to Advance Expansion Plan with Support for Eight New Digital Assets

Coinbase to Advance Expansion Plan with Support for Eight New Digital Assets

4 years ago
CrazyBunny – A Way You Should Know to Earn USDT in the Metaverse

CrazyBunny – A Way You Should Know to Earn USDT in the Metaverse

1 year ago
BXH (DEFI) Decentralize Finance Service Platform Announces Relaunch & Business Transformation

BXH (DEFI) Decentralize Finance Service Platform Announces Relaunch & Business Transformation

11 months ago

First Crypto News

First Crypto News

First Crypto News is the Fastest Crypto News Portal. We Bring the Best and We Bring it Fast.

Bitcoin

Amid Chinese Crackdown, America’s Foundry USA Mining Pool Enters Top Ten Spot

Amid Chinese Crackdown, America’s Foundry USA Mining Pool Enters Top Ten Spot

June 21, 2021

Recent News

Interest-Bearing Bonds-Backed Tokens: Generate yield using tokens backed by sovereign bonds

Interest-Bearing Bonds-Backed Tokens: Generate yield using tokens backed by sovereign bonds

January 16, 2023

Press Release

Exclusive “The Starry Night Licensed NFTs” To Release  In 3D and Augmented Reality on ElmonX

Exclusive “The Starry Night Licensed NFTs” To Release In 3D and Augmented Reality on ElmonX

March 24, 2023

© 2020 First Crypto News

No Result
View All Result
  • Home
  • World
  • Science
  • Tech

© 2020 First Crypto News