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Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
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Note: The above exchange logo is the official website registration link, and the text is the APP download link.

As Paypal opens cryptocurrency purchase services, Grayscale's holdings continue to increase, and the trading volume and attention of the crypto market continue to rise. The price of Bitcoin has broken through the 2017 high and is getting closer to $20,000. Therefore, the currency circle rumored that Bitcoin is the best performing asset this year, which has also led to more currency circle novices to enter the digital currency market and trade Bitcoin. However, for these currency circle novices, they only know that the price of Bitcoin is high, and they don't know anything else. For investors, it is necessary to understand the issuance of Bitcoin. So, what determines the issuance of Bitcoin? The following currency circle editor will tell you the origin of the issuance of 21 million Bitcoins.

 What determines the issuance of Bitcoin?

The rough description of the total issuance is as follows: a certain amount of Bitcoin is generated every 10 minutes, halved every four years, and the total issuance is capped at 21 million.

Let's talk about the halving rule. In January 2009, the genesis block of Bitcoin was born. The so-called genesis block is the 0th block on the Bitcoin blockchain. The number of bitcoins generated in this block is 50. After 10 minutes, the next block will appear on the system, and the number of bitcoins generated is still 50. The Bitcoin system stipulates that the output of Bitcoin will be halved every four years, that is, starting from 2009, 50 will be generated per minute; four years later, 25 will be generated every 10 minutes; after another four years, 12.5 will be generated every 10 minutes. By 2140, all Bitcoins will be produced, with a total of 21 million.

The above is a rough description of the Bitcoin issuance process. The so-called rough means that some data is inaccurate. For example, a calculator can be used to calculate that by 2140, the actual total amount of Bitcoin issued will be slightly less than 21 million

 The origin of the issuance of 21 million Bitcoins

1. Bitcoin was designed by Satoshi Nakamoto with an upper limit of 21 million. By limiting its maximum supply and slowing the rate at which new bitcoins are minted, Satoshi hoped that each unit of bitcoin (currently called a "satoshi") would appreciate in value over time.

According to an email shared by Satoshi and Bitcoin Core contributor Mike Hearn, Satoshi believed that if 21 million BTC were used by a certain portion of the world economy, 0.001
BTC would be worth about 1 euro.

This prediction came true in 2013, when Bitcoin first broke the 1,000 euro price point; today, each 0.001 BTC is worth nearly 8.25 euros.

2. Although Satoshi compared the price of Bitcoin to the euro in his email, some simple math suggests that he may have had a grander vision for Bitcoin, which explains why the 21 million cap was chosen.

At the time of Bitcoin's creation, the world's money supply was about $21 trillion. This number is called the M1 money supply and consists of the total value of all physical money in the world, including cash, gold, checks, and more.

If Bitcoin were to develop into the single world currency (replacing all currencies included in the M1 figure), then each BTC would be worth $1 million. Since there are 100 million Satoshis in each Bitcoin, each Satoshi would be worth $0.01.

It is an amazing coincidence that these numbers are so closely aligned to the truth, unless Satoshi intended it.

3. While the M1 money supply replacement theory is probably the most plausible reason for Satoshi to choose 21 million as the upper limit of Bitcoin, there is another (and perhaps simpler) explanation.

Looking at the parameters used to control Bitcoin's supply, it is clear that the 21 million Bitcoin figure enables the network to ensure that blocks are mined within a regular time period (10 minutes).

It also ensures that the number of Bitcoins paid to miners as block rewards decreases over time as the maximum supply approaches its upper limit. It turns out that the parameters set by Satoshi to do this inevitably lead to a maximum of 21 million BTC being produced.

4. The Bitcoin Core code currently adjusts the mining difficulty to ensure that a new block is mined every 10 minutes on average, regardless of the network's hash rate. Based on this feature, 210,000 blocks should be mined in every four-year cycle, after which the block reward will be halved.

The first cycle saw 50 BTC mined per block; this number halved to 25BTC/block in 2012, and then again to 12.5BTC
/block in 2016. Following the 2020 halving, it currently sits at 6.25/BTC block.

If you extrapolate forward, you'll find that the sum of the block rewards per cycle equals 100 (50+25+6.25+3.125+1.5625+.... and so on). By multiplying this number by the 210,000 blocks/cycle figure, you can derive a maximum supply of 21 million.

Through the above introduction, I believe everyone has understood the question of what determines the issuance of Bitcoin. In fact, for investors, the most important thing in the process of Bitcoin trading is to understand and learn more. After all, investment is risky and you need to be cautious when entering the market. Everyone knows this. For example, it is like sailing in the sea. No one can face zero risk. You can't control the fluctuations in the market. You can only increase the ability of the helmsman and the quality of the ship. In that way, your safety will be more guaranteed when the market is fluctuating, and the corresponding danger you face will be reduced.