Jamie Dimon Does Not Think Bitcoin’s Supply Will Be Capped

The chief executive of JP Morgan, Jamie Dimon, is a crypto skeptic, especially bitcoin, and he has been quite vocal about it.

Recently, he said that he does not believe that the supply of the world’s first cryptocurrency will be capped at 21 million.

Skeptic

On Thursday, the JP Morgan CEO put forward his doubts about the market supply cap of Bitcoin and said that there was a possibility that when it reaches 21 million, they would find out differently.

It is certainly not the first time that he has expressed his doubts about Bitcoin’s supply cap, as this particular feature is often used by the asset’s believers for promoting it.

In theory, an absolute supply cap would make Bitcoin quite scarce as opposed to any other currency issued by a government, which would give its value a strong boost.

He had talked about the same last October at an event of the Institute for International Finance and had questioned if everyone had read the algorithms because he was very much skeptical of it.

The response

However, it turns out that since Bitcoin’s algorithms are open source, they can be viewed freely by the entire world, which means that many people have indeed read them.

The co-founder of Casa, a Bitcoin wallet company, Jameson Lopp said that there are 5 lines of code that implicitly enforce the supply cap of the world’s first cryptocurrency.

To be accurate, BTC has been programmed to reduce its supply issuance rate after every 210,000 blocks by 50%, which usually happens in about four years.

In 2009, every block issued a total of 50 BTC, but each block today comes with 6.25 BTC. These events are referred to as ‘halvings’ and they will take place 33 times.

Once this has happened, the bitcoin reward will be reduced to zero. This is expected to happen by 2141, as long as there is no other change.

The details

Luke DashJr, a Bitcoin developer, said that rounding errors may begin after 10 halvings, which means that block rewards may be difficult to divide after 2049 past Satoshis.

He said that more precision was likely going to be hardforked in after that year. The math has been designed to ensure that the supply cap of BTC does not go beyond the 21 million mark.

However, it is also a fact that it is possible to change anything that has been enforced via code, as long as users give their consent.

A lot of people have argued that a software upgrade would be a must for the Bitcoin community for producing more than 21 million tokens for supporting the mining industry, as this will require more funding.

Even though Bitcoin has a limited supply, it can still be infinitely divided. It is possible for people to use the units of currency for conducting small transactions.

This can be done even if the price of Bitcoin rises and enters the range of 7 figures.

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