Ethereum: How to overcome the 21M limit of Bitcoins as adoption increases?

Ethereum: unlocking the entire potential of the cryptographic market with greater adoption

Being the second largest cryptocurrency in the world for market capitalization, Ethereum (ETH) has long been considered a leader in decentralized innovation. With more than 21 million coins in circulation, it is essential to address the limitations imposed on its total offer. In this article, we will explore how to exceed the 21 m limit of bitcoins and provide information on the possibilities of increasing the maximum currency limit.

Limit of 21 m: a limited market

The creator, Satoshi Nakamoto, in a white paper published in 2008, the reasoning behind this limit establishes the current Bitcoin roof. It leads to a decrease in the general value of existing currencies.

However, as the adoption of cryptocurrencies such as Ethereum and others increases, market dynamics change. With several people who want decentralized alternatives to traditional financial systems, the demand for new currencies, pressing the existing offer. This creates a self -consolidation cycle, in which the increase in adoption leads to higher prices, which in turn determines subsequent adoption.

Increase in the maximum currency limit: a broader adoption scenario

To exceed the limit of 21 m, we need more people and companies to adopt cryptocurrencies as Ethereum. Here are some ways to increase the maximum currency limit:

• Scalability improvements : Improve Ethereum’s scalability through updates such as fragments or scale solutions 2, which would allow transaction processing faster and reduce taxes.

• Diversification of use cases : Expand cryptocurrency applications beyond Bitcoin, such as decentralized finances (defi), games and social platforms, to attract new users and creators.

• Increased institutional investments : Attract institutional investors such as speculative funds and pension funds, demonstrating the potential of the Ethereum ecosystem.

• Regulatory clarity : Establish clear regulations that would reduce entry barriers and encourage more developers to trust the Ethereum platform.

Holding a fraction of a currency: possibilities

Although it can be difficult for individual users to contain fractional parts of their currencies, there are some ways to do this:

• Status and loan : Participate in honey programs, which allow you to win your coins, keeping it in a safe wallet or on a platform like coinbase.

• Active Tokenized : Invest in tokenized assets, such as ERC-20 chips, which can be purchased and sold in in line with fractional participation.

• Decentralized Financial Applications (DEFI)

  : Participate in platforms Defi that allow you to borrow, borrow or negotiate cryptocurrencies, while obtaining interest or taxes.

Conclusion

The 21 m limit of Bitcoin’s total offer is a limiting factor in cryptocurrency market growth. However, when addressing scalability problems, extending use cases, attracting institutional investments and clarifying regulations, it is possible to increase the maximum currency limit. In addition, having fractional parties of currencies through station programs, tokenized assets or defi applications can provide new opportunities for users.

As the world becomes increasingly decentralized, Ethereum’s position as an innovation leader will continue to grow, offering more possibilities to its ecosystem to expand and adapt to the change in market dynamics.

Sources:

• “The Future of Bitcoin” by Andreas Antonopoulos (2017)

• “Ethereum 2.0” Whitepaper (2021)

• “Active Tokenized” by Coindesk (2021)

Note: This article is only for informative purposes and should not be considered as investment councils.