Scarcity refers to the limited availability of a resource, especially when demand for it exists. In monetary systems, scarcity helps preserve value by preventing unlimited creation of new units.
Bitcoin mining reinforces scarcity through its fixed supply and predictable issuance schedule. Miners compete to validate transactions and are rewarded with newly created bitcoins, known as the block reward. Approximately every four years, this reward is cut in half during an event called a halving, which reduces the rate at which new bitcoins enter circulation.
Because Bitcoin’s total supply is capped at 21 million coins, mining releases new bitcoin at a steadily decreasing pace. This creates a deflationary monetary system with transparent, rule-based issuance—unlike fiat currencies, which can be expanded at the discretion of central authorities. Over time, this predictable schedule ensures Bitcoin remains scarce by design.
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