Bitcoin

Blackrock Sounds Alarm: Bitcoin Supply Shock – Insufficient BTC for Every Millionaire

editor 03/05/2025

BlackRock Warns of Bitcoin Supply Shock—Not Enough BTC for Every Millionaire

Introduction

Imagine Bitcoin as a treasure chest sought after by American millionaires. BlackRock, the titan of assets, sounds the alarm that this chest might run out of treasures. Michael Gates and Brett Wager from BlackRock emphasize the scarcity of Bitcoin due to its capped supply and the coins lost forever.

Bitcoin’s Supply Dynamics

Picture Bitcoin’s supply like a river that’s supposed to flow until the year 2140 with 21 million treasures. However, reality shows that many treasures are buried deep, lost, or washed away. BlackRock estimates that only 3 to 4 million treasures are visible, but unreachable, reducing the flow available for trading and investing.

Demand vs. Supply

The thirst for Bitcoin grows, especially among the wealthy. If each American millionaire asked for just one treasure, the chest could run empty. This showcases the fixed nature of Bitcoin’s supply, contrasting it with commodities that can be mined endlessly like gold.

Investment Merit of Bitcoin

Even with limited treasures, BlackRock sees value in the chest. They envision Bitcoin as a unique treasure trove possessing:

Store of Value and Monetary Alternative: A rare gem that could be a new refuge of wealth and a global monetary alternative.
Hedge Against Dollar Hegemony and Political Instability: A shield against the dominance of the U.S. dollar and unstable politics.
Proxy for Digital Transition: A chest full of coins that could thrive in the online era as more people shift from offline to online, driven by generational shifts.

These features create a unique treasure map offering diversification and reward in traditional investment seas.

Conclusion

BlackRock’s warning of a Bitcoin treasure shortage shows the value and unpredictability of this sought-after asset. As more high rollers consider joining the treasure hunt, the scarcity of treasures might raise the stakes. Understanding Bitcoin’s hidden treasures and their impact on investments becomes crucial in this risky adventure.

References

Related sources:

[1] dailyhodl.com

[2] ground.news

[3] cryptorank.io

[4] cryptorank.io

[5] coinstats.app