When there was no bitcoin, people faced many problems related to domestic currencies because the domestic currency is only usable under the country. If you want to use it outside the country, you have to change the currency with another currency that will take an extra charge. You can only use domestic money for the medium of exchange, but you cannot do more things with it. On the other side, bitcoin is finite in supply which controls the cost of bitcoin. The domestic currency of every country is inflation, but this digital currency is deflation currency. You can use this coin in multiple places such as online or offline stores, mining, or earning money. Thus there are many possibilities with bitcoin’s finite supply.
What is finite Supply in Bitcoin?
Finite supply in bitcoin means there are only a limited number of bitcoins. After reaching a mining limit, it would be complex to produce more bitcoins on the network. There are just twenty-one million coins on the blockchain platform, and ninety percent exist. Miners help build bitcoin by solving complex mathematical equations and using high computational power. If all the conditions meet the criteria, then there would be bitcoin. On the blockchain platform, there are many cryptocurrencies, but their supply is very high, and possibilities are meager. You can take advantage of Oil Trading App to make money with a finite supply.
Possibilities with Finite supply
There are many possibilities or opportunities with the finite supply of bitcoin given below:-
- Increase in value:- There are high chances of deflation in national currency because the government is working behind it, but bitcoin is the opposite. The desire to buy bitcoin is incrementing, and supply is finite; hence the value of bitcoin is incrementing. Therefore, there is a massive benefit to the long-term bitcoin users because they know the power of limited supply.
- More Usages:- Finite supply will create urgency in the market, and there is FOMO (fear of missing out). Hence, people buy bitcoin in a hurry, never to lose the opportunity. In some countries, bitcoin is not allowed to trade. Still, El Salvador is the country that announces bitcoin as legal currency and authorizes the people to use it as national or domestic currency, and people are using it. The president of El Salvador knows that the supply of bitcoin is finite, and there are many possibilities in the future. Hence, he announced bitcoin as a legal currency.
- Earning Opportunities:– No one wants to lose money; instead, everyone wants to make money with different methods. You can only make money through domestic currency by investing in stocks, property, or business. Still, bitcoin will give you many earning opportunities because there are multiple things to do with it. If you have proper knowledge about bitcoin, you can charge for bitcoin consulting; if you can take high risk, you can go with bitcoin trading. You can accept bitcoin in business by integrating bitcoin APIs and buying bitcoin through QR codes.
- Low transactional cost:- Every miner knows that the supply of this coin is limited, and transactions are high. Therefore, new miners are incrementing, and by incrementing the miners, competition is also incrementing. With increased competition, miners are ready to solve the bitcoin transactions at a low cost. Hence the transaction cost of bitcoin is decreasing by incrementing the number of miners.
- Payment Acceptance:- There are many users of this digital coin worldwide, and they are looking for a way to spend their bitcoins. It is a prominent opportunity for businesses to accept payment in bitcoin. More than one lakh sixty thousand merchants are already using bitcoin to receive payments. Even the offline stores in the urban cities also use the bitcoin QR system that is very easy to pay by scanning the code. If you are running an eCommerce store, it is straightforward to integrate the code under your products to accept payments in bitcoin. You can contact the integration company that will help you add a new payment method to your website.
- Legality:- Bitcoin’s cost is increasing because of its finite supply. Some countries are removing the restrictions and making bitcoin legal. In some countries, you can use bitcoin legally as other currencies because the government knows that bitcoin cannot be zero.
The unique thing in bitcoin is its finite supply that no other cryptocurrency has. The desire to buy bitcoin is increasing since the supply is limited, the cost of bitcoin is also growing. So it creates a lot of opportunities/possibilities for bitcoin to use around the world.