Asset Information
Max Supply: 21,000,000
White Paper: https://bitcoin.org/bitcoin.pdf
Website: https://bitcoin.org/en/
How Bitcoin Works
Bitcoin transactions are conducted through a peer-to-peer (P2P) network, where users can transfer Bitcoin directly to one another without any intermediaries. All of these transactions are recorded in a system called the blockchain.
What is Blockchain?
The blockchain can be thought of as a digital ledger that records every Bitcoin transaction ever made since its inception.
Each transaction record is stored in a unit of data called a block, and every block is linked sequentially—forming a chain of blocks, or the “blockchain.”
The Bitcoin blockchain uses a data structure known as a Merkle Tree, which enables the system to quickly detect any manipulation or data corruption. If a single file in the chain is altered or tampered with, the blockchain automatically isolates and rejects it, preventing it from affecting the rest of the ledger.
Bitcoin’s Total Supply: Limited and Controlled
One of Bitcoin’s core principles is its limited supply. The total number of Bitcoins that can ever be created is capped at 21 million, and currently, around 17 million Bitcoins are already in circulation.
Because this amount was predetermined and cannot be altered, Bitcoin is often compared to digital gold—rare, limited, and valuable.
Does Bitcoin Face Scalability Issues?
Some have raised concerns about Bitcoin’s potential scalability issues, mainly due to its limited supply. However, in practice, this has not posed a significant problem.
Bitcoin is highly flexible, as it can be transferred in extremely small units—as small as 0.00000001 BTC, known as a satoshi. This means that despite its finite supply, users can still conduct micro-transactions with ease.
