Definition ∞ Bitcoin supply scarcity refers to the inherently limited total quantity of Bitcoin that will ever exist, capped at 21 million coins. This fixed supply contrasts sharply with traditional fiat currencies, which can be printed without limit. The programmatic reduction of new Bitcoin issuance through halving events further reinforces this fundamental characteristic. This predefined constraint is a core tenet of Bitcoin’s economic model.
Context ∞ Bitcoin supply scarcity remains a constant theme in crypto news, particularly when discussing its value proposition as a store of value or its potential as a hedge against inflation. The key discussion involves how this fixed supply interacts with increasing demand, especially from institutional investors. A critical future development to watch for is the impact of subsequent halving events on market dynamics and price discovery.
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