Why only 21 million Bitcoin exists?

Have you ever asked yourself this question before and haven't found an answer yet?

Here is the summary I made.

Satoshi Nakamoto is known as the "father" of Bitcoin, the first cryptocurrency in the world. One of the things that many people wonder is why Bitcoin is limited to 21 million units.

Some argue that limiting the number of Bitcoin issued will help the currency avoid inflation.

However, the real reason for this limitation was revealed in an email between Satoshi Nakamoto and developer Mike Hearn. According to an email shared by Hearn, Nakamoto initially estimated that 0.001 BTC would be worth 1 euro.

"I want to choose a milestone to be able to convert to existing currencies. If Bitcoin becomes popular in the future, the limit of 21 million will increase the value of each Bitcoin more."

The email said.

According to a post on the StackExchange forum, the software states that about 10 minutes will have a new block added to the system, corresponding to a certain amount of Bitcoin being generated.

At the same time, the amount of Bitcoin gained after each newly added block will be halved over time.

Specifically, the first block will receive 50 Bitcoin for each new block. This number will be reduced to 25 Bitcoin per block in the next turn and so on to zero.

This cycle will take place in about 4 years. Thus, we will have the following calculation:

6 blocks / h x 24h x 365 days x 4 years = 210,000 (the number of blocks in each 4-year cycle) 50 +25 +12.5 +6.25 +... = 100 (total Bitcoin gain)

Therefore, the number of Bitcoin will be limited to: 210,000 x 100 = 21 million units.

Thanks for reading :)