How does Bitcoin’s circulating supply nearing the twenty one million cap impact its scarcity value?
Why is this the correct answer?
This is correct because as Bitcoin’s circulating supply approaches its maximum cap of 21 million coins, the available supply becomes more limited. In basic economic terms, when supply is fixed and demand remains constant or grows, each unit gains value because it is harder to obtain. For beginners, understanding this helps illustrate why Bitcoin’s scarcity can support its price over the long term.
Related Terms
AI-Generated Content Disclaimer
Important Notice: This content has been generated with the assistance of artificial intelligence. While we strive for accuracy, there may be errors or inaccuracies in the information provided. Please exercise caution and verify any information before making decisions based on it. This information does not constitute investment advice, financial advice, trading advice, or any other sort of advice. You should not treat any of the content as such. CryptoMeteo does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own due diligence and consult with a financial advisor before making any investment decisions.