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February 26, 2024CryptoExpertBitcoin
![Satoshi Nakamoto Explained Why Bitcoin Supply is 21 Million BTC - Top Crypto News (2) Satoshi Nakamoto Explained Why Bitcoin Supply is 21 Million BTC - Top Crypto News (2)](https://i0.wp.com/top-cryptonews.com/wp-content/uploads/2024/02/BIC_satoshi-covers-850x4781-1-678x381.png)
Emails purportedly from the pseudonymous Bitcoin developer, Satoshi Nakamoto, emerged on Friday, courtesy of Martii Malmi, an early contributor to the flagship digital asset. The correspondence adds further depth to Bitcoinâs lore, shedding light on its humble beginnings and Nakamotoâs decision-making process.
These emails surfaced during a legal battle in London involving the Australian scientist Craig Wright, who asserts himself to be Nakamoto.
Why Bitcoin Supply Is Capped at 21 Million
The exchange between Nakamoto and Malmi revealed that the decision to cap Bitcoinâs supply at 21 million tokens was not arbitrary but a deliberate choice. Nakamoto described it as an âeducated guess,â aimed at aligning Bitcoinâs pricing dynamics with established currencies while acknowledging the uncertainty of future market conditions.
âMy choice for the number of coins and distribution schedule was an educated guess. It was a difficult choice, because once the network is going itâs locked in and weâre stuck with it. I wanted to pick something that would make prices similar to existing currencies, but without knowing the future, thatâs very hard,â Nakamoto said.
Moreover, Nakamoto emphasized that 21 million BTC represented a fraction of global commerce, ensuring scalability for a worldwide currency system. This decision was made with the anticipation that Bitcoinâs valuation could fluctuate relative to traditional fiat currencies.
âIf you imagine it being used for some fraction of world commerce, then thereâs only going to be 21 million coins for the whole world, so it would be worth much more per unit. Values are 64-bit integers with 8 decimal places, so 1 coin is represented internally as 100000000. Thereâs plenty of granularity if typical prices become small. For example, if 0.001 is worth 1 Euro, then it might be easier to change where the decimal point is displayed, so if you had 1 Bitcoin itâs now displayed as 1000, and 0.001 is displayed as 1,â Nakamoto added.
Read more: Bitcoin Price Prediction 2024/2025/2030
These revelations offer valuable insights into Bitcoinâs early development and the considerations that shaped its foundational principles.
Other Revelations From Satoshiâs Emails
Beyond supply dynamics, the emails delve into various facets of Bitcoin. These include the portrayal as an investment vehicle and concerns regarding energy consumption and anonymity. Nakamoto cautioned against characterizing Bitcoin solely as an investment, highlighting the inherent risks and advocating for individual judgment.
âIâm uncomfortable with explicitly saying âconsider it an investment.â Thatâs a dangerous thing to say and you should delete that bullet point. Itâs okay if they come to that conclusion on their own, but we canât pitch it as that,â Nakamoto explained.
Additionally, while acknowledging the potential for increased energy consumption as Bitcoin scales, Nakamoto argued that it would still be less resource-intensive than conventional banking operations.
âIf it did grow to consume significant energy, I think it would still be less wasteful than the labor and resource-intensive conventional banking activity it would replace,â Nakamoto stated.
Read more: 7 Best Crypto Exchanges in the USA for Bitcoin (BTC) Trading
![Satoshi Nakamoto Explained Why Bitcoin Supply is 21 Million BTC - Top Crypto News (3) Satoshi Nakamoto Explained Why Bitcoin Supply is 21 Million BTC - Top Crypto News (3)](https://i0.wp.com/beincrypto.com/wp-content/uploads/2024/02/image-200-850x477.png)
Regarding anonymity, Nakamoto cautioned against overstating Bitcoinâs privacy features, warning that transaction histories could potentially reveal usersâ identities. The pseudonymous BTC creator said, âanonymous sounds a bit shady.â Moreover, the emails revealed that Nakamoto did not coin the term âcryptocurrency.â
âSomeone came up with the word âcryptocurrency.â [âŠ] Maybe itâs a word we should use when describing Bitcoin, do you like it?,â Nakamoto queried.
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