Bitcoin’s inherent scarcity is becoming a focal point as the cryptocurrency gains broader adoption, according to Bitwise CEO Hunter Horsley. Highlighting the finite nature of Bitcoin, Horsley emphasized the growing demand among wealthy individuals.
He noted that the estimated 58 million millionaires worldwide far outnumber the available supply of Bitcoin, with enough for only one in three to own a single coin. This scarcity, he explained, is likely to feel “dramatic” as Bitcoin becomes increasingly mainstream.
Bitcoin’s scarcity and fixed supply of 21 million coins underpin its value, offering transparency and predictability that distinguish it from traditional assets. However, recent discussions regarding an educational video from BlackRock made people question the safety of this supply cap.
Some of the information in the given video, such as the assertion or implication that the body behind Bitcoin may decide to increase the Bitcoin supply in the future, was unwelcome in the cryptocurrency community.
Also Read: Bitcoin ETF Adoption Surges as Bitwise Gains Traction Among Wealthy Firms
BlackRock Responds to Supply Concerns
BlackRock’s Adam Back addressed the issue on December 19, 2024, clarifying that the disclaimer was merely legal jargon and not a policy suggestion. He pointed out that due to the decentralized network of Bitcoin, its supply cap is protected as different nodes maintain the 21 million coin check and balance.
This made the community understand that Bitcoin’s finite asset still has its provability shielded from alterations that disallow scarcity. Bitcoin proponents and supporters opine that the programmed supply is one of the most essential advantages of the token.
Due to the scarcity of Bitcoin, the asset is deflationary, and more demand is created as the use of the asset increases. This is particularly important as Bitcoin nears the $100,000 price mark, currently trading at $99,189.86 with a 1.61% increase in the past 24 hours, according to CoinMarketCap.
Owning a Full Bitcoin Remains Rare
Data from BitInfoCharts underscores Bitcoin’s scarcity, revealing that only 1.82% of addresses hold an entire coin, while just 8.2% possess more than 0.1 BTC. Larger holdings are rarer, with only 0.25% of addresses holding over 10 BTC, roughly equivalent to $1 million at current prices. These figures highlight the exclusivity of owning a significant portion of the world’s most prominent cryptocurrency.
Conclusion
Bitcoin’s finite supply continues to drive its appeal as both an investment and a store of value. As mainstream adoption grows and scarcity becomes more apparent, Bitcoin’s price is expected to climb. With its supply cap firmly safeguarded by its decentralized structure, Bitcoin’s position remains secure as a scarce and valuable asset.
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