Bitcoin recently achieved an all-time high of $108,000 in December 2024, reigniting discussions about its fixed supply of 21 million coins.

In a recent video, BlackRock highlighted the importance of Bitcoin's fixed supply for controlling inflation and preserving value, while also acknowledging that there is 'no guarantee' this limit will remain unchanged.

Concerns have emerged regarding whether transaction fees will adequately incentivize miners in the long term, prompting some advocates to argue for maintaining the supply cap to uphold Bitcoin's principle of scarcity.

Bitcoin miners, who play a crucial role in securing the network, receive rewards in new Bitcoins, but these rewards are halved every four years, with all coins projected to be mined by 2140, after which miners will depend solely on transaction fees.

Changing the 21 million cap poses significant risks to Bitcoin's unique identity and could potentially lead to a broader crash in the cryptocurrency market, despite Bitcoin's upward trend.

Many within the Bitcoin community argue that removing the supply cap would fundamentally alter Bitcoin's identity, as this limit is central to its definition and value.

Technically, altering the 21 million cap is feasible but would require consensus within the Bitcoin community for a major change known as a 'hard fork', which would result in two versions of the network.

Historically, the Bitcoin community has shown resistance to significant changes, as evidenced by the failed attempt to increase Bitcoin's block size between 2016 and 2017, despite strong support from 95% of miners.

The discussion surrounding Bitcoin's scarcity has been fueled by disclaimers from influential figures, with critics like Joel Valenzuela suggesting these could serve as a pretext for altering Bitcoin's fundamental rules.