By Michael Scott
A Bitcoin analyst from the hardware wallet company Trezor warned that developers could eradicate the 21-million limit on Bitcoin supply. Josef Tětek admitted that though developers can circumvent the 21-million cap, mining firms are unlikely to accept such changes.
The analyst revealed that Bitcoin developers have successfully demonstrated the capability to theoretically overcome the 21-million supply limit imposed on Bitcoin from the source code.
Theoretical Adjustment of Bitcoin Supply Cap Possible
The analyst acknowledged that the 21-million hard limit consists of a fundamental principle leveraged by the Bitcoin network. Its existence is responsible for providing scarcity, the gap arising between unlimited wants and limited resources.
Tětek indicated that the 21-million supply cap is integrated within the open-source code. The writer is identified as the anonymous creator Satoshi Nakamoto. The analyst observed that the source code is accessible publicly on GitHub. However, its availability is not explicitly revealed in the code.
Tětek revealed that one can discover the cap by querying the ‘validation. cpp’ file on the source code. One needs to access the part identified as ‘GetBlockSubsidy.
The analyst reveals that the code illustrates that miners’ subsidy is subject to a half reduction upon completing 210,000 blocks. The halving is to occur approximately after four years. The code means that the reward miners deliver from completing the blocks would decline to zero from the 50 Bitcoin subsidy. Such would occur after 33 Bitcoin halvings are programmed to occur every four years.
Bitcoin Supply Cap Reignites the Blocksize War
Like other codes, Bitcoin is founded on a source developers can modify. It implies that the 21-million limit is theoretically adjustable.
Tětek, a proven Bitcoin analyst at Trezor, indicated that developers can introduce anything they desire. Nonetheless, the change will need acceptance from miners to become effective.
The analyst at the hardware wallet firm warns that developers cannot compel the changes to any party.
The primary say in the accepted activities relies upon the node runners. Such constitute individuals scattered around the globe that run the Bitcoin full nodes.
Tětek cited the historical precedent that featured the Blocksize War witnessed in 2017. The incident involved several developers, exchanges, and miners who desired to expand the block size of the Bitcoins from the initial size of 1 megabyte.
The node runners dismissed such a proposal to modify the size, alleging that its acceptance would translate to greater centralization of the token.
Several commentaries within the Bitcoin community reiterated the sentiments on the Bitcointalk forum. The commenters expressed confidence that miners will ultimately dismiss such advances to remove the 21-million supply cap.
Bitcointalk user Kakmakr noted that the network participants will object to running the code. Such will necessitate undergoing the hard fork that not everyone would support.
Bitcointalk Forum Respond to Anti-Bitcoin Stance
The participants indicated that Bitcoin does not match fiat currency in nature when the central banks turn to money printers to increase the supply. Adjusting the Bitcoin supply would involve reaching a consensus among the network’s participants.
The sentiments conveyed in the Bitcointalk forum come after JPMorgan chief executive Jamie Dimon became skeptical of the finality of the 21-million Bitcoin supply as maximum.
The Bitcoin critic replicated his attacks directed at the token, alleging its continued use in sex trafficking. In the interview on Wednesday, January 17, he disclosed that Bitcoin has become the preferred tool for tax avoidance and orchestrating money laundering schemes.
The hostile stance demonstrated by Dimon has played out in December 2023. When appearing before the Senate Banking Committee, the JPMorgan chief lashed out against digital assets, stating that he would crack down on Bitcoin if he were the government.
Dimon’s hostility against Bitcoin appears contradictory as JPMorgan is readying for a tokenization project. Besides, JPMorgan Securities was identified alongside Jane Street as the authorized participant by BlackRock in its final filing for the spot Bitcoin exchange-traded fund (ETF).