Bitcoin Max Supply

Bitcoin's max supply is capped at 21M and is divisible into 100,000,000 sats, which is true. But in recent years, many financial mechanisms have made Bitcoin paper more accessible for regular investors who don't want a whole Bitcoin due to its inherent risk of loss or theft. This is similar to gold. In a way, it is limited on Earth. Gold must be mined, but it can be traded on paper with trusted third parties who are able to acquire licenses.

So is Bitcoin still 21M? The answer is yes, but also no, because not every investor or user of Bitcoin will use or hold Bitcoins directly. This means that there are more Bitcoin representations out there than the 21M limit.

These representations include Bitcoin ETFs, futures contracts, and Bitcoin held on exchanges. While the blockchain will never exceed 21M coins, the financial system has created multiple layers of Bitcoin exposure that effectively multiply its tradeable supply. This mirrors traditional markets where derivative products often exceed the physical supply.

Meanwhile, Bitcoin's role has evolved from being digital money to becoming a store of value product. This shift has made room for stablecoins to become the digital money for everyday use. Both current and future stablecoins will likely fill this role better because they maintain stable prices that people need for regular transactions.

Bitcoin's success didn't fail - it showed us what works best. The real revolution of Bitcoin wasn't just about making digital money. Instead, it showed us how to experiment with value as information. This breakthrough lets us try new ideas about:

• How money works in the digital world
• How we own and transfer digital things
• How we can make financial systems without too much trust in others

Bitcoin started it all by proving we could have digital scarcity without central control. Now, this idea helps build many new digital tools for our economy, each serving its own purpose while building on Bitcoin's core ideas.