Bitcoin Nears $100k: Scarcity Fuels Demand as Full Coin Ownership Becomes Elusive

January 7, 2025
Bitcoin Nears $100k: Scarcity Fuels Demand as Full Coin Ownership Becomes Elusive
  • 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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Bitwise CEO Warns of Dramatic Bitcoin Scarcity Ahead

The Currency analytics • Jan 6, 2025

Bitwise CEO Warns of Dramatic Bitcoin Scarcity Ahead

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