Certified Bitcoin Professional Practice Exam

Can the protocol of Bitcoin be changed to allow for a larger supply?

1. Yes, it can

2. No, it cannot

3. Only with community consensus

4. Only by government regulation

The correct answer is: Yes, it can

The concept of Bitcoin's supply is fundamental to its design, featuring a maximum cap of 21 million coins. This limit is hardcoded into the Bitcoin protocol, which means that any potential change would require a significant alteration to the underlying software that governs Bitcoin. While the assertion that changes can be made to the protocol seems plausible, the reality is that any such alterations are highly complex and contentious. The changes would require extensive agreement among core developers and the larger Bitcoin community. A change to allow for a larger supply would fundamentally alter Bitcoin's monetary policy, impacting scarcity and potentially its value proposition. Therefore, while technically it is possible to change the protocol to allow for a larger supply, it would not be a simple task. Such a move would likely face significant resistance from those who believe in Bitcoin's existing economic principles. Thus, while it might seem straightforward to suggest that the protocol can be altered, the practical implications and community dynamics make it a nuanced issue. The most accurate view considers the requirement for community consensus and trust in the system's integrity, which emphasizes the decentralized nature of Bitcoin as opposed to suggesting that any individual or entity could simply change the rules on their own.