What determines the supply of bitcoin? A probabilistic, geometrically declining supply function meant to simulate the issuance of precious metals. Every ten minutes, new bitcoin are created. Every four years, the block reward cuts in half in what is known as “the Halvening.”

Will the supply cap at 21 million bitcoins cause problems for adoption? If there is demand, the bitcoin already issued will circulate in the market and create velocity in the economy. We will see different monetary policies for other cryptocurrencies. Bitcoin is unequally distributed and it may make a new 1%, but it may also make you part of the new 0%. The fundamental difference is that the new Bitcoin 1% got there through being rewarded for taking risks on a new and relatively untested currency, whereas the traditional 1% got there because their grandfather killed more people than my grandfather.

Watch the rest of the presentation: https://youtu.be/P6F1vTG_hA0

The first question is part of a talk which took place at the Singularity University’s Innovation Partnership Program (IPP): https://youtu.be/l1si5ZWLgy0

The second question is part (Q&A-3) of a keynote talk which took place on October 19th 2016 during the Bitcoin Wednesday Meetup at the Eye Film Museum in Amsterdam, Netherlands: https://www.meetup.com/BitcoinWednesday/events/234498117/

Event Info: http://www.bitcoinwednesday.com/event/special-edition-19-october-2016/

Presentation Info: http://www.bitcoinwednesday.com/antonopoulos-bitcoin-incubator-black-swans/

Watch the full talk here: https://youtu.be/3MLy5Z5ISeA

RELATED:
Divisibility and deflationary monetary policy – https://youtu.be/xhLgxX_wU6E
The rules of Bitcoin (part 1) – https://youtu.be/VnQu4uylfOs
The rules of Bitcoin (part 2) – https://youtu.be/vtIp0GP4w1E
Global financial crisis (GFC) – https://youtu.be/JU3gNC_ZPKM
The revolution in trust – https://youtu.be/iWfpxB3HZOY
Who determines the value of bitcoins? – https://youtu.be/DucvYCX1CVI
The end of vampire-squid financing – https://youtu.be/yyXOQG5iNWo
The Stories We Tell About Money – https://youtu.be/ONvg9SbauMg
Fake News, Fake Money – https://youtu.be/i_wOEL6dprg
Is Bitcoin a democracy? – https://youtu.be/TC3Hq76UT5g

Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and well-respected figures in bitcoin.

Follow on Twitter: @aantonop https://twitter.com/aantonop
Website: https://antonopoulos.com/

He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters.

THE INTERNET OF MONEY, v1: https://www.amazon.co.uk/Internet-Money-collection-Andreas-Antonopoulos/dp/1537000454/ref=asap_bc?ie=UTF8

MASTERING BITCOIN: https://www.amazon.co.uk/Mastering-Bitcoin-Unlocking-Digital-Cryptocurrencies/dp/1449374042

[NEW] MASTERING BITCOIN, 2nd Edition: https://www.amazon.com/Mastering-Bitcoin-Programming-Open-Blockchain/dp/1491954388

Subscribe to the channel to learn more about Bitcoin & open blockchains!

If you want early-access to talks and a chance to participate in a monthly LIVE Q&A with Andreas, become a patron: https://www.patreon.com/aantonop

Music: “Unbounded” by Orfan (https://www.facebook.com/Orfan/)
Outro Graphics: Phneep (http://www.phneep.com/)
Outro Art: Rock Barcellos (http://www.rockincomics.com.br/)

source

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28 COMMENTS

  3. Since it came down to 3500$ I been putting in 50 or 100$ every other day or so just becouse I missed out on the first run doesn’t mean I will miss out again this is your chance u have 1509$ sleeping around go and use it get half a bitcoin u will thank me in 2022

  5. What would happen to inactive bitcoins in the long run?.. Many people have lost their key, and have no way of retrieving the account. And I assume many more will in the future. I'm guessing this would only increase the value of the remaining bitcoins in circulation. Maybe after the 21mil have been mined, miners will use their complex computers to try to unearth long lost accounts. If thats even possible.. And if it is, couldnt they use the same method to get into active accounts? hmmmm

  6. This issue has always bothered me about bitcoin. The supposed 21 million cap in bitcoins is simply a number in a computer program. The cap can be changed simply by changing the 21 to a 22.

    Every time the bitcoin code is changed, such as with the lightning network, they are showing how the 21 million cap can be changed.

    If enough people want the 21 to be 22, it will become 22. This is just like the debt ceiling in congress. They keep setting a ceiling and then keep raising it.

    The only way to truly have cap is if there were a physical limit. Since crypto is a computer program it is physically impossible to have any cap or limit.

  8. What if a new currency or coin gets created with a new set of parameters? Then wouldn't the whole premise of decentralized currency fail? I haven't bet more than I can lose but I want to. I'm fed up with using blood soaked fiat dirty money. Xrp is the establishment for example. Are we working with them or trying to make them obsolete? If we do not crush the establishments form of power than how can a digital means of free trade exist?

  9. The whole "equality/inequality" is bunk. Tired of smart people "debating" this. As if the millionaires of today didn't take risks on business visions they had and were rewarded for it, No certainly their grandfather just killed for it and stole it. Bunk narrative.

    For some reason otherwise intelligent people often lose it on this topic. I think their politics cloud their judgment.

  13. Here is my take on BITCOIN……

    It's about trust and confidence. Bitcoin have been running smoothly for roughly 9 years without any hiccup . Even if other more recent coins have more modern technology architecture, people will go with the one which is proven most stable and has the largest user base. Think I phone ( best operating system / first smart phone ) vs other smart phones … Levis jeans ( best quality / first jeans ) vs copy cats….

    Lighting Network ( LN ) will finish off the competition much improved speed and cost for transactions . Think BITCOIN 2.0 the new and improved version , ALT coins are after all just copy cats ….

    Also I hate how people say it takes so much electric power to create BITCOINS , well how much energy does it take to mine GOLD ??? is the question I ask …. A LOT , yeah that's right use your GOD given brain once in a while…..

    In it's inception it was 15c or so now 14.000 US pretty damn good investment I would say and remember BITCOIN is just in it's infancy . If you invested 100 dollars in 2010 into BITCOIN your net worth would be over 100 million dollars US now , insane but true… never before in history has something created such EXTREME wealth , in this is just the beginning.

    Now let's look at the US dollar FIAT currency , roughly 250 TRILLION in debt with future obligations they lie it's not 20 TRILLION , who the HELL is going to pay for this NO ONE , devalued daily , printed endlessly , I think BITCOIN is a much better investment long term think RARE like GOLD limited in supply only 21 million or so can ever be mined , NOT devalued daily doing the opposite going up daily , sure dips and valleys but going up and up …. profit taking in between to be expected but in the end going up…..and up ….

    BTW BITCOIN is now the 6th largest currency in the WORLD , you read that right …. and
    remember it's just in it's INFANCY …. even micro bits will server you well in the future.

  18. Hi Andreas.
    Sometimes you say things that just don’t add up. For example; How the hell was it an enormous risk early on, for those that bought bitcoin at£1. £10 or £100 ? – that’s hardly an enormous risk.

  19. Please answer my question: Today many people are mining bitcoins and they earn a little percentage of Bitcoin per transaction. After bitcoins reach its limit of 21 million, how will it reward for mining bitcoin?

    Thanks,
    Avinash Singh Khalsa.

  21. The full block chain size is currently roughly 145GB, I can handle such a download in a laptop or a desktop pc but how does it work on a mobile? I can not download such an amount of data into my phone, so I guess there is an intermediary when using the mobile app?

  23. A currency is only as good as the trust that is put in it. What if by 2141 we aren't using Bitcoin? It's a bit of a stretch to assume BTC will last another 124 years, so much can happen especially in the 21st century.

  24. so do i need to go to a bitcoin bank to get the actual bitcoins to keep ? and if it's only online them what do i do with the bit coins i get in person, spend it like cash ?

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