As per the data released by Clark Moody Bitcoin Dashboard, over 90% of the total 21 million bitcoin has been mined. Since the regulatory demand is rising globally, mining activity and demand have increased. Through a consensus algorithm, which is administered by tens of thousands of global nodes, the Bitcoin network, the major form of digital cash designed to solve the problem of double-spending in a properly distributed and trustless manner, imposes a supply cap of 21 million coins.
One of the most enticing elements of Bitcoin is its stable and unchanging monetary policy, especially when compared to the reality of cryptocurrencies, whose supply along with the regulatory policy might alter based on the decisions taken by the authority.
Nobody has the capacity to increase the supply of bitcoin, and no one has the power to decrease it. The Bitcoin network operates under the principle of “rules without rulers,” and the rules are set in stone.
The Meme ‘We are Still Early”
Despite the fact that “we are still early” turned into a meme, it rings true. Only a small percentage of the population is aware of Bitcoin’s potential to empower ordinary people. People who live in privileged communities with high levels of freedom and individual rights may dismiss Bitcoin, but the peer-to-peer cash system can also empower many.
For the most part, Bitcoin means various things to different individuals. For example, it serves as value for users residing in the United States or the United Kingdom, the country facing less inflation but has significant purchasing power. For someone in Palestine or Cuba, where violence and authoritarianism have taken place, Bitcoin is the last hope of financial independence.
Bitcoin’s diverse use cases throughout the world highlight its adaptability and the numerous ways it may help different individuals in different situations.
Increase in the Supply
Scarcity is much more apparent now that more than 90% of the Bitcoin supply has been released. Although cryptocurrencies are frequently exchanged on the market, the fact is that the majority of the circulating bitcoin supply is owned by companies with little or no history of selling.
Glassnode, a data analytics business, published research in December 2020 that attempted to evaluate and provide some light on the liquidity of the Bitcoin supply. It looked at “Bitcoin entities” and divided them into three categories based on their liquidity: extremely liquid, liquid, and illiquid.
Despite the fact that issued bitcoin is exchanged on the market, the majority of it is owned by persons who have no plans to sell it. In the Bitcoin community, the meme “HODL” is popular, and many people are committed to hanging on to their BTC until “hyperbitcoinization,” which is when they will be able to spend rather than sell i.e., Bitcoin becomes fully monetized.