Why is Bitcoin Maximum Supply Set in 21 Million Coins? — Explained
Article Gist: Find out the most realistic reason why Satoshi Nakamoto set the maximum supply of bitcoin at 21 million
Let’s start with the wildest speculation:
1. Satoshi is a big fan of the Blackjack game
Blackjack is a card game that contains 1 bookie and 1 up to 5 players in a mode. To win the game, either a player or the bookie should collect cards (2–3 cards at maximum) until they reach an equal value of 21. If your cards have a value of more than 21, you will lose automatically.
I assume that Satoshi thought this total number of “21” is identically a winning number.
2. Satoshi wanted to equalize the M1 Money Supply
We know that via bitcoin, Satoshi wants to replace the fiat currency, whose system has suffered many problems. Before bitcoin was made, M1 Money Supply released a data. It explained that there were $21 Trillion ($21,000,000,000,000) of total money around the world. Those monies includes paper money, coins, checkable deposits, and traveler’s checks.
I assume that Satoshi wanted bitcoin to have the same supply as fiat currency, and if bitcoin succeeded to become the only currency that people used in 2008, I could say bitcoin’s rice would be $1 Million
*Calculation: $21 Trillion (Total Circulating Money in 2008) divided by $21 Million (bitcoin)
3. $21 Million is just a coincidence number
Let’s jump to the most realistic one, but still, it is a speculation, so there’s a forum named StackExchange, a popular developer explained that bitcoin‘s maximum supply is more of a mathematical coincidence than a conscious choice.
Here’s the calculation:
the number of blocks per four year cycle:
6 blocks per hour
* 24 hours per day
* 365 days per year
* 4 years per cycle
= 210,240
~= 210,000
Sum all the block reward sizes:
50 + 25 + 12.5 + 6.25 + 3.125 + … = 100
Multiply the two:
210,000 * 100 = 21 million.
Satoshi Nakamoto never really explained why he set the maximum supply at 21 Million, everything you just read are speculations.
