Bitcoin's Scarcity Puts It Ahead as Store of Value
Coinbase CEO Brian Armstrong has once again expressed his bullish views on Bitcoin, stating that it offers a store of wealth that cannot be inflated away. This argument is based on the cryptocurrency's limited supply and decentralized monetary structure.
The maximum supply of Bitcoin is capped at 21 million coins, which sets it apart from traditional fiat currencies that can be expanded by central banks as part of their monetary policy. Armstrong argues that this scarcity is a fundamental difference between Bitcoin and conventional government-issued currencies.
Bitcoin's issuance schedule is governed by its underlying protocol, rather than the decisions of a central bank or government. New bitcoins are released through the mining process, with the amount issued reduced approximately every four years through an event known as the Bitcoin halving.