what is Monetary Policy? To Maintain the Supply Demand of Money In Every Country Monetary Policies are made.

Bitcoin's Monetary Policy

Similarly Bitcoin also deals with Transaction ,that's why Bitcoin has its own Monetary Policy. to maintain supply of bitcoin. There are Two Principal of Bitcoin's Monetary Policy

• The Halving
• Block Frequency

The Halving Principle every four years or After every 210,000 blocks mined, the block reward given to Bitcoin miners for processing transactions is cut in half. Supply cap of Bitcoin is 21 million it will not Increase. In Halving the supply of new bitcoins—and the reward for mining them—is cut in half.

Block Frequency This states that on an average it will take 10 minutes to create a new block.

bitcoin's algorithm runs block frequency or number of bitcoin monetary policy. bitcoin's protocol made to do these work on its own. no central authorities are involve.

Why Bitcoin have a 21 million limit?

Since Bitcoins are intended for transactional use, just like paper currency, too many Bitcoins in the market could generate crazy price swings. keeping that in mind, the inventor stipulated a 21 million Bitcoin limit to control the supply and future price fluctuations.