Bitcoin Nears $100k: Scarcity Fuels Demand as Full Coin Ownership Becomes Elusive
January 7, 2025
Such suggestions of altering Bitcoin's supply are considered heretical within the Bitcoin community, as the cryptocurrency's value is fundamentally tied to its scarcity.
With approximately 58 million millionaires worldwide and only enough Bitcoin for about one in three of them to own a full coin, the tension between supply and demand is becoming increasingly pronounced.
Investment products like ETFs and futures contracts are making Bitcoin more accessible to traditional investors, intensifying competition for its limited supply.
The rise in demand coupled with Bitcoin's scarcity may lead to increased volatility, with market sentiment shifts having significant impacts on its price.
Currently, only 1.82% of Bitcoin addresses hold a full Bitcoin, while just 8.2% have more than 0.1 BTC, highlighting the rarity of owning a complete coin.
A mere 0.25% of addresses contain more than 10 BTC, which equates to approximately $1 million at current prices, illustrating the concentration of Bitcoin ownership.
Recent comments from BlackRock stirred controversy by suggesting that Bitcoin's maximum supply of 21 million could potentially be expanded, raising concerns among investors.
Proponents of Bitcoin assert that its finite supply will drive future price increases, especially as the cryptocurrency nears the $100,000 mark.
The growing interest from institutional investors and wealthy individuals is widening the gap between Bitcoin's supply and demand, further complicating the market.
Hunter Horsley, CEO of Bitwise, predicts that as Bitcoin gains mainstream acceptance, its scarcity will become increasingly significant, posing challenges for investors trying to acquire full coins.
As Bitcoin's price approaches the significant milestone of $100,000, the prospect of owning a complete coin is becoming increasingly elusive for most investors, which could further drive demand.
Adam Back from BlackRock clarified that recent statements suggesting a potential expansion of Bitcoin's supply were merely legal precautions, reaffirming that Bitcoin's total supply remains fixed and verifiable.
Summary based on 2 sources
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Sources

u.today • Jan 6, 2025
Bitwise CEO Says Bitcoin Scarcity Will Feel More Dramatic
The Currency analytics • Jan 6, 2025
Bitwise CEO Warns of Dramatic Bitcoin Scarcity Ahead