did you know that there can only ever be 21 million Bitcoins in the world interesting right why not 1 million 100 million or Infinity since we can't ask Satoshi the creator of Bitcoin why he or she set the limit at 21 million will instead present you with a couple of intriguing theories beginning with the money supply replacement Theory [Music] according to an email supposedly shared between Satoshi and Bitcoin core contributor Mike Kern Satoshi says I wanted to pick something that would make prices similar to existing currencies going back to 2009 when Bitcoin was invented the total Global money supply including cash coins demand deposits Travelers checks and others was approximately 21 trillion dollars on one hand a dollar's smallest unit is a cent each dollar equals a hundred cents so the total existing currency in 2009 was around two thousand one hundred trillion cents on the other hand bitcoin's smallest unit of currency is called a Satoshi each Bitcoin is equal to a hundred million satoshi's so if the total Supply is capped at 21 million then it means there will only ever be 2 100 trillion satoshi's very spot out in satoshi's email to Mike Hearn he further explains 0.001 BTC could be worth one Euro that actually came true in 2013.
Of course Bitcoin is now worth much more which Satoshi also accounted for in his email saying without knowing the future that's very hard the fact Still Remains that the numbers are pretty close to just being a mere coincidence alternatively some have argued that the 21 million cap is arbitrary and can be explained by some quick math this Theory says that 21 million is the limit because of two rules decided on by Satoshi Nakamoto that new blocks are added onto the chain roughly every 10 minutes and that mining rewards would be halved every 210 000 blocks otherwise known as the Bitcoin having the Bitcoin having is when rewards for miners are slashed in half and takes place after every two hundred ten thousand blocks are mined which happens to be roughly every four years so in 2009 for every block mind miners earned 50 Bitcoin then 25 Bitcoin in 2012 then 12.5 Bitcoin in 2016 6.25 Bitcoin in May 2020 and the next having is set to take place in March 2024.
[Music] the having sequence looks something like 50 BTC plus 25 BTC plus 12.5 BTC plus 6.25 BTC and so on adding up to roughly a hundred BTC so by the time the block rewards get to zero BTC which is estimated to be in 2140 the total number of Bitcoins released into circulation just happens to be 210 000 blocks a hundred BTC which equals around 21 million however this doesn't explain why he chose the 10 minute block time or the four-year having schedule some people say it's maybe just because he liked blackjack so which Theory makes more sense definitely Satoshi Nakamoto truly knows and he or she isn't telling.
