Nite
Valued Contributor
A hard limit refers to the maximum number of bitcoins that can ever be created, which is capped at 21 million coins. This limit is a fundamental feature of the Bitcoin protocol and is enforced by the system’s consensus rules. The concept of a hard limit in Bitcoin is closely tied to the idea of digital scarcity, as it mimics the scarcity properties of precious metals like gold. By establishing a fixed supply cap, Bitcoin aims to create a store of value that cannot be manipulated by central authorities or subject to arbitrary inflation. This predictability and transparency in the monetary policy of Bitcoin are key factors that contribute to its appeal as a decentralised and censorship-resistant form of money.
