Why The Supply of Bitcoin is Limited
In an editorial piece appearing on the Coingeek.com website, Dr. Michael Wehrmann discusses the limitations of Bitcoin.
Wehrmann recently finished his dissertation on competitive law and works at a law firm. Concerning Bitcoin (BSV), he tries to understand its connection to economics and society, while wrapping his head around the question what it takes to wake up digital currency enthusiasts to the simple fact that only a scalable protocol serves as a worldwide ledger.
All Bitcoins Have Been Issued Already
- There are actually no more new Bitcoins being created by miners.
- All bitcoins were issued at the formation around a decade ago.
- Satoshi Nakamoto issued all Bitcoins in January 2009 and is—automatically via the Bitcoin software—distributing them to the honest nodes (miners) that perform their work in and for the Bitcoin system.
- No matter how much they might try, miners cannot create new bitcoins.
Wehrmann makes it clear that the distribution of bitcoins is an ongoing process.
Could Satoshi Nakamoto issue more Bitcoins? And therefore distribute more Bitcoins to the miners?
"He definitely could, but it probably is wise not to do so," Whermann offered. "And this is not due to the thought of “more Bitcoins harm the deflationary status of Bitcoin.” It rather has to do with regulatory reasons concerning issuing something of value, and the contractual nature of Bitcoin."
The Rationale
- Changing the limited supply of Bitcoin would be incoherent with the Bitcoin contractual offer that Satoshi has made to the world.
- There is more to it than the contractual side of Bitcoin.
- Bitcoin founder Satoshi Nakamoto issued the cryptocurrency at zero value. Today, a single Bitcoin is worth around $50,000.
Bitcoin SV is the only digital asset that follows the original Bitcoin white paper whereas other digital currency are considered "new coins", according to Wehrmann.
- Aaron Goldstein, Gambling911.com
