Bitcoin is unique in that when the last bitcoin is mined, around the year 2140, there will be approximately 20,999,999.9769, rounded off to 21 million, bitcoins in circulation. Also, by 2140, there’s going to be more people on the planet than there are right now (expectedly).
Here’s a question to ponder on: Are 21 million bitcoins enough for the human race?
The Beauty Of Divisibility
The Bitcoin protocol can absorb huge amounts of capital through its transactions across digital borders. It is able to do this through one of its key characteristics: divisibility.
Divisibility is one of the properties of any form of money, commodity, fiat or cryptocurrency that makes something of use or value into exchangeable money. In order to exchange goods of varying values, money has to be broken down into smaller units so it can be accounted for. In order to adopt and encourage the practical usage and purchase of bitcoin as an everyday currency alternative, bitcoin divisibility is crucial. Just like a one dollar bill can be broken down into 100 pennies, bitcoin can also be divided into smaller units. As the value of one bitcoin has increased, it is reasonable to buy a fraction of the digital currency instead of an entire bitcoin all at once. Bitcoin is divided into units as small as 0.00000001 BTC, which makes bitcoin perfect for micropayments. The divisibility of bitcoin comes from the currency’s maximum supply and other factors, such as the block reward. The smallest fraction of a bitcoin, 0.00000001 BTC, or 1 satoshi, was named to honor its mysterious creator, Satoshi Nakamoto. A single bitcoin is made up of 100,000,000 units called “satoshis.” Bitcoin’s divisibility could be a factor that contributes to its adoption because it will facilitate a wide range of payments that will not be possible with traditional currencies and payment methods. Online monetization and international remittances services can benefit from this feature. Successful currencies are…