Bitcoin is different from traditional currencies because its maximum supply is limited to 21 million coins.
But why does this matter?
1. Scarcity: Bitcoin has a predetermined maximum supply. 2. Transparency: Its supply rules can be verified on the blockchain. 3. Predictability: New Bitcoin issuance follows a programmed schedule. 4. Decentralization: No single central bank controls its monetary policy.
However, limited supply does not guarantee higher prices. Demand, market conditions and investor behaviour also matter.
My question: Do you think Bitcoin's limited supply is its biggest strength, or is decentralization more important?