It's about Bitcoin mining, the process of generating new Bitcoin. Every 10th minute a block is mined and new coins are released and credited to the miner or mining pool who solved the block. Back in 2009 the reward was 50BTC, in 2012 it was halved to 25BTC, 2017 halved to 12.5BTC and 2021 halved to 6.25BTC.
You get the idea, every 4th year, or 200 000th block or so the mining reward is halved, since this mining reward creates new Bitcoins, this is the inflation of Bitcoin.
Now let's do the math, 6.25 -> 3.125 -> 1.5625 -> 0.78125 -> 0.390625... While this reward keeps going down, so does the inflation, soon this number becomes so insignificant that it doesn't actually increase supply. This is why they say by year 2140 the last Bitcoin will be mined, which of course is the last whole Bitcoin.
This is why the total amount of Bitcoin can never exceed 21M coins.
Compare this to fiat where as soon a new loan is issued, new money is printed out of thin air, plus interest which requires even more money to be printed of thin air, a ripoff unless you're a Muslim or a jew who gets interest free loans.
Or gold, which is mined, where we can discover new sources anywhere on earth or in space. And, soon as someone mines that, the gold supply will increase.
It's about Bitcoin mining, the process of generating new Bitcoin. Every 10th minute a block is mined and new coins are released and credited to the miner or mining pool who solved the block. Back in 2009 the reward was 50BTC, in 2012 it was halved to 25BTC, 2017 halved to 12.5BTC and 2021 halved to 6.25BTC.
You get the idea, every 4th year, or 200 000th block or so the mining reward is halved, since this mining reward creates new Bitcoins, this is the inflation of Bitcoin.
Now let's do the math, 6.25 -> 3.125 -> 1.5625 -> 0.78125 -> 0.390625... While this reward keeps going down, so does the inflation, soon this number becomes so insignificant that it doesn't actually increase supply. This is why they say by year 2140 the last Bitcoin will be mined, which of course is the last whole Bitcoin.
This is why the total amount of Bitcoin can never exceed 21M coins.
Compare this to fiat where as soon a new loan is issued, new money is printed out of thin air, plus interest which requires even more money to be printed of thin air, a ripoff unless you're a Muslim or a jew who gets interest free loans.
Or gold, which is mined, where we can discover new sources anywhere on earth or in space. And, soon as someone mines that, the gold supply will increase.
This is 💯!🔥🍿🔥. Nicely said