As Bitcoin gains popularity, concerns over its scarcity are growing. Let's look at the state of the Bitcoin market and issues related to its supply.
Bitcoin Scarcity in a Global Context
Bitwise CEO Hunter Horsley suggests that the feeling of Bitcoin scarcity will intensify as it becomes more widespread. There are 58 million millionaires globally, yet there's only enough Bitcoin for about one-third of them.
Supply Cap Safety Concerns
Investment giant BlackRock caused controversy with a suggestion that Bitcoin's supply cap could be extended, although BlackRock's Adam Back stated that it was just a meaningless legal disclaimer. Each network node confirms that the total supply remains unchanged.
True Rarity of Bitcoin Ownership
According to BitInfoCharts, only a small fraction of addresses (1.82%) possess a full Bitcoin. Additionally, only 8.2% of all addresses hold more than 0.1 BTC. Only 0.25% of addresses have more than 10 BTC, equivalent to roughly $1 million at current prices. Bitcoin's price is nearing the $100,000 mark again, reinforcing bullish predictions due to its finite supply.
As Bitcoin's popularity and limited supply continue to fuel price expectations, investors and market participants are keeping a close watch on developments and debates around the cryptocurrency's supply.
