Monday, September 1, 2025
No Result
View All Result
CONTACT
First Crypto News
  • News
  • Bitcoin
  • Ethereum
  • Industry
  • Market Updates
  • Price
  • Coins
  • Press Release
  • News
  • Bitcoin
  • Ethereum
  • Industry
  • Market Updates
  • Price
  • Coins
  • Press Release
No Result
View All Result
First Crypto News
No Result
View All Result

Every Wondered Why Satoshi Nakamoto Chose 21 Million as the Limit for Bitcoin?

by firstcryptonews
July 14, 2019
in News
Every Wondered Why Satoshi Nakamoto Chose 21 Million as the Limit for Bitcoin?

As we inch closer to the next Bitcoin halving, it’s necessary to think about the specific design of the coin as done by Satoshi Nakamoto. Specifically, why was 21 Million the set figure for Bitcoin mining?

Bitcoin was the first fully decentralized digital asset to hit the market. Created a decade ago by Satoshi Nakamoto, it’s currently the world’s biggest cryptocurrency with a market cap of $219 billion and almost 70% dominance at writing time.

Satoshi put a lot of thought and work into creating Bitcoin but a decade later, there are still two unknowns about this journey. Firstly, no one knows who Satoshi Nakamoto really is. Whether the name belongs to one person, male or female or if it’s a moniker for a group of developers is unknown.

Also, Satoshi set design for Bitcoin, limiting its production to 21 million. In other words, there will never be more than 21 million Bitcoins produced except something changes. This leads us to the second unknown – no one really knows why a 21 million limit was set.

Bitcoin’s Fixed Supply
It’s pretty easy to understand why there is a finite supply set for Bitcoin as it helps prevent inflation. Bitcoin is mined as block rewards for the miners and is set to halve after every 210,000 blocks which happens over a four-year period. Currently, miners earn 12.5 Bitcoins per block and by May 2020, it will be reduced to 6.25. This is a commendable way to control the arbitrary supply of the asset but still doesn’t explain why exactly the “21 million” figure was chosen.

Satoshi Wanted Similarities Between Bitcoin and Fiat
There is one pointer to the figure as seen in a correspondence between Nakamoto and Mike Hearn, a software developer. According to the email, Satoshi says the design for the “number of coins and distribution schedule was an educated guess” and also a “difficult choice.”

Basically, Satoshi tries to explain a desire for some similarity between Bitcoin and Fiat currencies even though the difficulty of that due to possible changes to both currencies in the future was also considered. However, regardless of the intended similarity, Satoshi believed that adoption could drive Bitcoin to be worth a lot more per unit.

The above, on some level, explains a little about what Nakamoto had in mind especially with regards to fixing a limit but the real thought or calculation that resulted in 21 million is still a little lost on the cryptosphere.

The Community Weighs In
Over the last few years, there have been a lot of guesses as to the 21 million figure and whether there’s a real meaning or calculation that birthed it. Some have offered mathematical explanations while some others have expressed more random thoughts.

Allen Ewart, a fintech founder and editor posited that “21 million” might be deeper than it looks. For him, “the number 21 is considered to be a creative spirit.”

There are some others who think it’s unnecessary to try figuring out what brought about the exact figure. To them, the main point to be made here is the fact that it’s fixed and the exact number, whether 21 million or 210 million is therefore ultimately irrelevant.

Perhaps the most intriguing explanation is a mathematical one offered by a member of the StackExchange forum. According to the post, the number of blocks per cycle can be gotten by multiplying 6 (blocks produced every hour) by 24 (hours in a day) by 365 (number of days in a year) and then by 4 (number of years in a cycle.) This gives 210,240 which is then rounded down to 210,000.

Furthermore, addition of all the block rewards from inception – 50+25+12.5+6.25+3.125 gives 96.875 which is rounded up to 100.

Further multiplication of both numbers (210,000×100) is 210 million.

However, it’s important to note that this explanation was created after Satoshi already set the 21 million figure and the maths only satisfies the figure but doesn’t really answer the question.

Maybe one day Satoshi Nakamoto will reveal their true identity (-ies) and then we can ask all the puzzling questions. But until then, all we have is conjecture and the correspondence that calls it “an educated guess.”

Related Posts

Imagen Network (IMAGE) Launches Modular Personalization Hubs for Creator-Driven Ecosystems

Imagen Network (IMAGE) Launches Modular Personalization Hubs for Creator-Driven Ecosystems

by firstcryptonews
September 1, 2025
0

New personalization hubs empower creators with scalable tools for audience connection and engagement. London, UK – September 1, 2025 –...

Atua AI Introduces Smart Control Pipelines to Strengthen Protocol-Level Coordination

Atua AI Introduces Smart Control Pipelines to Strengthen Protocol-Level Coordination

by firstcryptonews
August 29, 2025
0

Intelligent automation pipelines enhance governance, resource allocation, and system reliability across decentralized networks. London, UK – August 29, 2025 –...

Imagen Network develops modular personalization engines to enhance creator-centric engagement

Imagen Network develops modular personalization engines to enhance creator-centric engagement

by firstcryptonews
August 26, 2025
0

New AI-driven personalization tools strengthen relevance and visibility for creators in decentralized environments. Singapore, SG – August 26, 2025 –...

Atua AI Launches Next-Generation Frameworks to Elevate Multi-Chain Productivity

Atua AI Launches Next-Generation Frameworks to Elevate Multi-Chain Productivity

by firstcryptonews
August 22, 2025
0

Advanced AI-driven infrastructure enhances scalability, cross-network adaptability, and workflow reliability for Web3 enterprises. London, UK – August 22, 2025 –...

Atua AI Builds Intelligent Execution Models to Optimize Web3 Performance

Atua AI Builds Intelligent Execution Models to Optimize Web3 Performance

by firstcryptonews
August 21, 2025
0

New execution models enhance reliability, speed, and scalability for decentralized business operations. Singapore, SG – August 21, 2025 – Atua...

Atua AI Integrates Modular Logic Layers for Smarter Application Scaling

Atua AI Integrates Modular Logic Layers for Smarter Application Scaling

by firstcryptonews
August 14, 2025
0

New architecture enhancements enable enterprises to scale AI applications efficiently across decentralized ecosystems. Singapore, SG – August 14, 2025 –...

Next Post
FED Chairman: Facebook’s Libra Cannot Go Forward!

FED Chairman: Facebook’s Libra Cannot Go Forward!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

VAULTHILL

Vault Hill raises $2.1m to build its human-centric metaverse leveraging urban planning principles

4 years ago
Mobotic: Revolutionizing Robotics

Mobotic: Revolutionizing Robotics

7 months ago
Sleep City Introduces a Sleep-to-Earn Metaverse Experience with First-Ever NFT Pillows & SCT Token

Sleep City Introduces a Sleep-to-Earn Metaverse Experience with First-Ever NFT Pillows & SCT Token

3 years ago
Binance Launches P2P Trading; Adds Supports For Users To Pay Using AliPay and WeChat

Binance Launches P2P Trading; Adds Supports For Users To Pay Using AliPay and WeChat

6 years ago
Crypto Markets Enter ‘Fear Territory’ As Bitcoin Bulls Strive For $9,000

Crypto Markets Enter ‘Fear Territory’ As Bitcoin Bulls Strive For $9,000

6 years ago
Lawmaker Offers New Hope for ICOs in South Korea

Lawmaker Offers New Hope for ICOs in South Korea

6 years ago

First Crypto News

First Crypto News

First Crypto News is the Fastest Crypto News Portal. We Bring the Best and We Bring it Fast.

Bitcoin

Amid Chinese Crackdown, America’s Foundry USA Mining Pool Enters Top Ten Spot

Amid Chinese Crackdown, America’s Foundry USA Mining Pool Enters Top Ten Spot

June 21, 2021

Recent News

Imagen Network (IMAGE) Launches Modular Personalization Hubs for Creator-Driven Ecosystems

Imagen Network (IMAGE) Launches Modular Personalization Hubs for Creator-Driven Ecosystems

September 1, 2025

Press Release

The Wally Group’s Roadmap: Building Beyond the Meme

The Wally Group’s Roadmap: Building Beyond the Meme

August 22, 2025

© 2020 First Crypto News

No Result
View All Result
  • Home
  • World
  • Science
  • Tech

© 2020 First Crypto News