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Bitcoin Cash maintains the same maximum supply limit as Bitcoin, with a hard cap of 21 million coins. This fixed supply is a fundamental characteristic that distinguishes Bitcoin Cash from traditional fiat currencies and contributes to its value proposition as a decentralized digital currency.
The maximum supply of Bitcoin Cash is programmed into its protocol and cannot be altered without consensus from the network participants. This scarcity mechanism is designed to prevent inflation and preserve the purchasing power of BCH over time, similar to how precious metals like gold maintain value through limited availability.
As of current mining activities, new Bitcoin Cash coins are created through the block reward system, which halves approximately every four years in an event known as “halving.“ This gradual reduction in new coin issuance ensures that the total supply will approach but never exceed 21 million coins, with the final Bitcoin Cash expected to be mined around the year 2140.
The fixed maximum supply makes Bitcoin Cash a deflationary asset, meaning its scarcity increases over time as demand grows while new supply diminishes. This economic model contrasts sharply with government-issued currencies that can be printed without limit, often leading to devaluation through inflation. |
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