Glossary

21 Million

1 min read

There will never be more than 21 million bitcoin in existence. This limit is defined by an algorithm in Bitcoin’s code and is strictly enforced by each node in the Bitcoin network. When a miner creates a new block, they are rewarded with the ability to mint new bitcoin, but every node verifies that the miner has created no more new bitcoin than allowed by the algorithm.

➤ Learn more about Bitcoin's issuance schedule.

The number 21 million is an arbitrary number. However, changing it would be disastrous for Bitcoin. Bitcoin is the first provably mathematically scarce asset in history, and its monetary policy has remained publicly known and unchanged since its inception. If this policy were to be changed once, it would destroy the credibility Bitcoin has built up over its entire history, and future changes would be far easier to introduce, inflating Bitcoin’s supply and undermining its scarcity.

Related Terms
Hard Cap
Bitcoin total supply will never exceed 21 million bitcoin. This policy gives Bitcoin its absolute scarcity.
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Halving
Every 210,000 blocks, the block subsidy is cut in half in an event known as the halving. This process will continue until the block subsidy is zero, at which point miners will only collect transaction fees and Bitcoin's inflation will hit absolute zero.
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Block Subsidy
The block subsidy is the amount of new bitcoin minted in each block, and it forms the largest part of the block reward. The block subsidy is cut in half every four years.
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Consensus
Consensus is the ideal and the method of coordination between individuals in a decentralized system. Consensus is achieved at the development level with regards to changes to the Bitcoin protocol, and it is also achieved with regards to agreement on the state of the blockchain.
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