Myth 1

The Supply of Bitcoin is Finite

Bitcoin is often described as \'digital gold\' because the total number of coins is supposed to be capped at 21 million units. These units are being slowly mined and released into circulation. However, while the creator of bitcoin wrote a protocol which created a mathematically certain total supply, there is no reason why this number cannot be increased if the cryptocurrency community decides to modify the protocol. In fact, this has already happened when bitcoin cash was created using a hard fork, which created an entirely new cryptocurrency with its own supply of coins to be mined.

However, the bitcoin community has so far defended the idea of a fixed and finite supply, as this is one way of ensuring that the cryptocurrency retains the value created by scarcity. However, over time it is possible that the bitcoin community will start to agree with economic experts who have suggested that as bitcoins are lost and not replaced, the cryptocurrency will enter into a deflationary spiral. It remains to be seen just how bitcoin will be shaped in the coming decades but one fact is certain - the supply of bitcoin is not finite.