> For the complete documentation index, see [llms.txt](https://hub.bsvblockchain.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hub.bsvblockchain.org/higher-learning/bsv-academy/bsv-basics-protocol-and-design/introduction-to-bitcoin-protocol-and-design/digital-scarcity.md).

# Digital Scarcity

<figure><img src="https://3421145409-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FRTEKu4E7Fvtss3GI9CYU%2Fuploads%2FvVWK6pZO6F4Tr8pfbNWJ%2Fscarity.png?alt=media&amp;token=46dff116-bef9-4ab8-8af5-a8feb6ac6791" alt=""><figcaption></figcaption></figure>

Another pivotal concept introduced by Bitcoin is **digital scarcity**. Within the Bitcoin protocol, there exists a finite supply of bitcoins, capped at **21 million** created and set aside at the launch of the network. The smallest unit of a bitcoin, known as a **"satoshi,"** represents **1/100,000,000th** of a bitcoin.

This limitation on supply ensures that no more than 21 million bitcoins will ever be emitted through the **block reward subsidy**, establishing Bitcoin as a **digitally scarce asset**.

This scarcity mustn't be seen as a gimmick to pump the coin's price. Rather, the limitation on coin supply **incentivises miners to remain in the network** they've invested in thus far, to process millions and billions of **meaningful transactions** and **charge fees** as the block reward subsidy diminishes towards zero.


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