This Crypto Industry Leader Wants to Change Bitcoin's Supply Policy. What Would It Mean for Investors?
To say that the proposal was controversial doesn't quite capture the strength of the backlash.
Overview
Bitcoin (CRYPTO: BTC) holders, whether they realize it or not, are relying on one number to stay etched into stone just as it was originally carved. That number is 21 million, because it's the maximum number of BTC that can ever exist, as defined by its protocol. One of the bigger names in crypto now wants to change that crucial dynamic.
On July 7, Eli Ben-Sasson, CEO of StarkWare and a co-founder of Zcash, proposed canning the 21 million BTC cap in exchange for adding a maximum annual issuance rate of 4%. At today's supply of around 20.1 million BTC, this would mean minting 804,000 BTC in the first year alone, and more every year after that.
Details
4% annual compounding would take Bitcoin's supply past 53 million coins within 25 years.
Source
Originally published at www.fool.com.
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