Part 3/9:
What propels this halving mechanism? It is intended to ensure continuous miner incentive and price stability by reducing the influx of new coins. This design leads to significant price increases over time, as demand for Bitcoin stays relatively robust while its supply steadily decreases.
The Economic Value of Bitcoin
So, what gives Bitcoin its value? Primarily, it’s the only truly decentralized and scarce digital currency, offering ownership and transferability without third-party oversight. This scarcity—capped at 21 million coins—implies that, should Bitcoin develop into a widely accepted currency, its valuation could soar, potentially reaching one million dollars per coin based on current monetary comparisons.