Key Takeaways
- BlackRock's video questioned Bitcoin's fixed 21 million cap.
- Critics argue changing the cap would create a new currency.
- Consensus among all stakeholders would be needed for such a change.
The debate over Bitcoin’s fixed 21 million supply cap has resurfaced following a BlackRock explainer video.
The video, posted on Dec. 17, described Bitcoin’s capped supply as a key feature for maintaining its value but included a controversial disclaimer:
There is no guarantee that bitcoin’s 21 million supply cap will not be changed.
Bitcoin community backlash
This statement has drawn criticism from Bitcoin proponents, including MicroStrategy chairman Michael Saylor, who shared the video, and others who view the cap as fundamental to Bitcoin’s identity.
Dashpay’s Joel Valenzuela remarked:
When the supply cap increase happens, it will have ‘always been part of the plan.’
Technical implications
Bitcoin developer Super Testnet emphasized that changing the cap would essentially create a new currency.
They argued that such a change would deviate from Bitcoin’s foundational principles outlined by its creator, Satoshi Nakamoto.
Super Testnet stated:
The inflation cap is definitional to Bitcoin.
Consensus requirements
Technically, a change could occur through community consensus and a hard fork.
For this to succeed, most node operators, miners, and investors would need to adopt the updated rules.
However, Super Testnet noted that Bitcoin miners alone couldn’t enforce such a change, as seen during the 2016–2017 Blocksize War.
Supply and incentives
Currently, only 1.09 million Bitcoin remain to be mined.
While some argue that an uncapped supply could address long-term miner incentives, critics contend that this would undermine Bitcoin’s unique scarcity.
