In the cryptocurrency world, it belongs Bitcoin (BTC) to the most significant digital assets. One of its main advantages is the fixed limit for the total amount of coins – 21 million BTC.
This concept is often considered a cornerstone of its value. A recent discussion sparked by a three-minute video from an asset manager BlackRockhowever, questions this immutability.
What does BlackRock claim?
On December 17, BlackRock released a video explaining that Bitcoin has a fixed maximum number of coins.
“There is no guarantee that the 21 million coin limit will not be changed,” they stated in the video.
This comment created a huge wave of discussion among experts and cryptocurrency enthusiasts.
Michael Saylorchairman of the company MicroStrategy and well-known Bitcoin supporter, shared the video repeatedly, which only added fuel to the fire.
BlackRock explains #Bitcoinpic.twitter.com/X2fPl8tL2s
— Michael Saylor⚡️ (@saylor) December 17, 2024
Critics warn that if that limit were ever raised, it might undermine the very essence of Bitcoin as a deflationary asset.
Technical possibility vs. philosophical essence
Some experts stress that changing the limit would require a massive consensus across the community, inclusive node operators, developers, miners and investors.
This change could take place through the so-called hard forku, in which Bitcoin would split into two different networks – one with the preserved limit and the other with its change.
In practice, this means that any version of Bitcoin without a fixed limit would be another cryptocurrency rather than the real Bitcoin as defined by Satoshi Nakamoto in his whitepaperu.
The Future of Bitcoin Mining
With each subsequent halving (an event in which the reward for a Bitcoin miner for a mined block is halved), miners’ dependence on transaction fees increases.
After the last halving, miners gain 3,125 BTC, which at current prices represents something over $ 316 000.
However, in 2028 this reward will drop to 1,625 BTCwhich could significantly affect their profitability.
Therefore, analysts emphasize the need for continuous development of applications on the Bitcoin network that could generate sufficient income for miners.
Without it, the long-term sustainability of mining could suffer, especially when the last Bitcoin block is mined around 2140.
Lessons from the past
However, history shows that any efforts to fundamentally change Bitcoin’s rules are met with resistance.
During the so-called Blocksize War in 2016-2017, most miners tried to increase the block size. Nevertheless, most nodes and investors rejected this change, thus preserving the original rules of the Bitcoin network.
This conflict has shown that the Bitcoin community is firmly rooted in its philosophy and will not easily accept radical changes.
Millionaire
We recommend!
