Bitcoin's Scarcity: The Key to Unlocking its Potential in Decentralized Finance
January 10, 2024Bitcoin is a decentralized digital currency known for its scarcity.
The supply of Bitcoin is capped at 21 million coins, and halving events reduce the rate of new bitcoin creation.
Bitcoin's scarcity is protected by its consensus mechanism and the difficulty of mining.
Bitcoin has the potential to significantly impact decentralized finance (DeFi) adoption.
Its stability, trust, security, and regulatory compliance make Bitcoin an ideal starting point for DeFi.
Despite a small value locked in DeFi compared to its market cap, Bitcoin's extensive user base and network effects provide liquidity and integration with DeFi platforms.
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