In the context of Bitcoin, the concept of “infinity divided by 21 million” is often used as a metaphor to describe the scarcity of Bitcoin relative to potential global demand. Here’s the breakdown:
1. Bitcoin’s Fixed Supply: Bitcoin has a hard cap of 21 million coins, making it an exceptionally scarce asset.
2. Global Demand (Potentially Infinite): If Bitcoin becomes widely adopted as a global store of value or currency, the demand for it could theoretically be limitless as people, institutions, and nations seek to own a portion of the fixed supply.
3. Infinity Divided by 21 Million: The phrase symbolizes that if the global demand (effectively infinite) were to be distributed among the fixed 21 million coins, the value of each Bitcoin would theoretically become astronomically high. This is a conceptual way of illustrating the idea of absolute scarcity.
Real-World Interpretation
Each Bitcoin is divisible into 100 million satoshis, allowing for microtransactions even if Bitcoin’s value increases significantly. This divisibility ensures usability even as demand increases.
The metaphor is often used by Bitcoin proponents to emphasize why the fixed supply makes Bitcoin a unique form of “digital gold” with deflationary potential. It highlights the contrast between Bitcoin’s limited supply and the seemingly infinite creation of fiat money.