To reduce the supply. It is the exact opposite of dollars for example where they just keep printing more (inflation) which is why the price of things you buy keeps going up over time.
The price of any asset is usually determined by supply and demand. The lower the supply the less there is to go around so it should increase in value as long as there is the same or increasing demand for it.
Bitcoin for example halves the number of Bitcoin that can be mined per block every 4 years and as there is a fixed supply of 21 million this means that the price should increase as there is less going on the market from miners. Also people lose access to their wallets so the actual supply is always decreasing (deflation).
To reduce the supply. It is the exact opposite of dollars for example where they just keep printing more (inflation) which is why the price of things you buy keeps going up over time.
The price of any asset is usually determined by supply and demand. The lower the supply the less there is to go around so it should increase in value as long as there is the same or increasing demand for it.
Bitcoin for example halves the number of Bitcoin that can be mined per block every 4 years and as there is a fixed supply of 21 million this means that the price should increase as there is less going on the market from miners. Also people lose access to their wallets so the actual supply is always decreasing (deflation).
ahhh thanks for explaing that makes perfect sense!
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