Bitcoin has a hard-coded supply limit: only 21 million Bitcoins will ever exist. This number is written into the software and cannot be changed without global consensus.
How new Bitcoins are created:
Bitcoins are introduced through a process called mining. Miners validate transactions and are rewarded with new Bitcoins. But that reward decreases over time in an event called the halving, which happens roughly every four years.
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In 2009, the reward was 50 BTC per block
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In 2024, the reward dropped to 3.125 BTC per block
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The last Bitcoin will be mined around 2140
Why the supply limit matters:
The fixed supply makes Bitcoin resistant to inflation. Unlike fiat currencies, where central banks can print more money, Bitcoin’s supply is predictable. This scarcity is one reason many people see it as a store of value.
