Blackrock’s recently posted video explaining the basics of bitcoin to investors has raised questions about the staying power of the so-called hard cap issuance limit. In the video, Blackrock explains that there is “no guarantee” that the 21 million supply cap will not be changed, opening a debate on the ossification of the top cryptocurrency.
Turmoil: Blackrock's Bitcoin Video Raises Questions About the 21 Million Hard Cap
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Blackrock’s Bitcoin Video Acknowledges Bitcoin Hard Cap Limit Is Not That Hard
A recent Bitcoin explanatory video issued by Blackrock has ignited the debate regarding one of the most relevant traits of bitcoin: its scarcity. The video, which describes bitcoin as a natural evolution of money, defines blockchain as the rails of the currency and highlights the rising popularity of BTC, also served to put its 21 million issuance limit in the spotlight.
When explaining scarcity as one of the pillars of bitcoin rising value, Blackrock also clarifies, in small letters, that there is no guarantee this limit will not be changed in the future. For some, this hints at a possible takeover from corporate actors that would want to change the issuance of bitcoin to make more coins available in the market.
While changing bitcoin’s 21 million hard cap, initially established by Satoshi Nakamoto as an “educated guess” for bitcoin’s value to be comparable to other currencies, is possible, it would involve a coordinated effort from several key parts of the bitcoin ecosystem, including node operators and miners.
However, this change is attainable, and some crypto developers have discussed this possibility for quite some time. Nikita Zhavoronkov, lead developer at blockchair, stated that the limit will be eventually raised to maintain the bitcoin security budget. “I’ve been saying this for years: by stopping Bitcoin from scaling its L1, they’ve created the security budget issue which they’re going to solve with additional emission,” he stressed.
Read more: Blockchair’s Lead Developer Expresses Concerns Over Bitcoin’s Security Budget
Peter Todd, a software developer recently identified as Satoshi Nakamoto in HBO’s documentary Money Electric, has also examined the subject before. In 2023, Todd explained that adding a small “tail emission” in 10 to 20 years could not be “so controversial anymore,” opening the doors for the bitcoin community to accept this change via a fork.
Read more: Bitcoin’s 21 Million Supply Cap: Immutable Truth or Future Flexibility?
