Since its introduction in 2009, bitcoin was structured specifically to
operate as a robust and secure store of value, and as an alternative to
existing banking systems, financial networks, and currencies.
Currently, many investors and traders have invested in bitcoin as a
safe haven asset and a long-term investment. But, as bitcoin evolves as a
technology and a robust financial network, it will soon compete with
reserve currencies, existing banking systems, and traditional assets
such as gold.
For the long-term growth of bitcoin’s market cap and price, its
deflationary nature will be a vital factor to sustain bitcoin’s upward
momentum and demand for bitcoin from the global market.
Because there will only be 21 million bitcoins and no additional
bitcoin can be created after the supply achieves its cap, only a limited
number of investors would be able to hold one full bitcoin.
But, bitcoin’s deflationary supply is not an issue for investors and
merchants that adopt bitcoin as a digital currency because it is
divisible. Currently, many bitcoin wallets and merchants use “satoshi”
as a unit, with one satoshi representing 0.00000001 bitcoin.
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