Capitalizations Index – B ∞/21M
Explains how bitcoin’s 21 million supply cap creates deflationary pressure, limiting issuance, reducing inflationary dilution, and shaping long-term value dynamics in contrast to fiat currencies.
bitcoin’s value rests on limited supply, cryptographic security, growing network effects and practical uses-from payments to store of value. These four pillars underpin market trust and long-term utility.
bitcoin is deflationary by design: supply capped at 21 million coins, halving events reduce new issuance, and diminishing inflation contrasts fiat systems with adjustable money supply.
bitcoin is called ‘digital gold’ because its 21 million cap and predictable issuance create scarcity akin to gold. Decentralization, divisibility and durability support its role as a digital store of value.
bitcoin halving is a scheduled event that reduces the reward miners receive for validating blocks by 50%. It limits supply growth, influences miner economics, and can affect market dynamics.
bitcoin’s value rests on three pillars: coded scarcity via a 21 million supply cap, cryptographic security protecting transactions, and growing utility as a borderless programmable store of value and medium of exchange.