:max_bytes(150000):strip_icc()/BlockReward-5c0ad88946e0fb0001af7198.png?w=770&resize=770,470&ssl=1 "Leading Bitcoin Developer Peter Todd Challenges 21M Cap: Would You Continue to Hold?")
Leading Bitcoin Developer Peter Todd Challenges 21M Cap: Would You Continue to Hold?
Peter Todd, a prominent Bitcoin developer (rumored to be Satoshi in the HBO documentary), expressed that BTC might not have a definitive hard cap moving forward and could experience an inflation rate of 1% per annum.
Did that make you chuckle? Numerous individuals online have claimed that “21 million BTC” is the primary narrative of BTC.
The rigid circulating supply limit of 21 million bitcoins has characterized it as “digital gold” amidst ongoing fiat currency inflation. What occurs if this limit is removed?
The Origins of Bitcoin’s Token supply Limit
Who is Peter Todd? In the recent HBO documentary “Money Electric,” Peter Todd is disclosed as Satoshi Nakamoto, the originator of BTC.
Todd, as shown above, embodies the image one might envision for Satoshi. It reminds one of a Weird Al song: “White & Nerdy.”
Although the 21 million token supply cap is pivotal to Bitcoin’s value, it isn’t explicitly stated in its source code. This slow diminishment of new issuance is intended to slowly decrease over time, with the last token expected to be mined by 2140.
Peter Todd has suggested completely reevaluating the established cap, proposing a minor, consistent inflation to incentivize miners as crypto mining diminish. While a contentious proposal, it is gaining attention among those concerned about future protection threats.
Modifying Bitcoin’s 21 million limit involves more than a simple adjustment. It necessitates a formal BTC Improvement Proposal, detailed peer reviews, and widespread agreement from the platform, particularly the approximately 22,000 active nodes that maintain it.
Lacking near-unanimous consent, such a move might incite a hard fork, dividing the chain as witnessed in 2017 with Bitcoin Cash’s advent.
Backlash from the Community
>Attempting to change Bitcoin’s token supply cap resembles the effort to alter scripture—and the faithful are resistant. Analysts contend that this hard cap is the foundation of its legitimacy.
“Altering it would erode confidence in the system,” declared Virginia Canter. “Scarcity is the narrative.”
Additionally, history has not looked favorably upon internal conflicts. The blocksize controversy that divided the community from 2015 to 2017 exemplifies how rapidly technical discussions can escalate into ideological battles.
In the long term, however, another concern arises: once all 21 million bitcoins are mined, miners will rely solely on transaction fees. This raises a significant question—will that suffice to keep users content?
What Lies Ahead for BTC?
At present, any attempts to alter Bitcoin’s 21 million hard limit remain theoretical.
The significant technical and political obstacles, along with potential crypto market repercussions, render it improbable in the near future. Nonetheless, the discourse underscores Bitcoin’s continuous evolution, highlighting that nothing is guaranteed even for BTC.
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Key Takeaways
- Bitcoin’s rigid token supply limit of 21 million coins has served as its hallmark, establishing it as “digital gold.”
- Attempting to alter Bitcoin’s circulating supply limit feels akin to attempting to change sacred texts—and the faithful resist.
The article Top Bitcoin Developer Peter Todd Questions 21M Cap: Would You Still Long-term holding? was first published on 99Bitcoins.
