Bitcoin’s limited supply has been a key factor driving its recent rally, according to experts. With only 21 million bitcoins ever to be created, the scarcity of the cryptocurrency has contributed to its increasing value.
The concept of scarcity plays a significant role in economics, and this applies to bitcoin as well. As the supply of bitcoins is limited, the demand for the digital currency has been steadily growing. This imbalance between supply and demand has led to a surge in bitcoin’s price over the past few years.
Experts believe that the fixed supply of bitcoin has made it a popular choice for investors looking to hedge against inflation and economic uncertainties. With central banks printing more money and devaluing traditional currencies, bitcoin’s scarcity has made it an attractive alternative for those seeking a store of value.
While some critics argue that the limited supply of bitcoin could hinder its mainstream adoption, others view it as a positive feature that sets it apart from traditional fiat currencies. The debate over bitcoin’s scarcity continues to divide opinions, but one thing is certain – its limited supply has played a significant role in driving its rally to new heights.