While Bitcoin enthusiasts celebrate its record-breaking price surge, BlackRock has issued a sobering reminder about the cryptocurrency’s true scarcity. The world’s largest asset manager pointed out a startling fact: there isn’t enough Bitcoin for every US millionaire to own just one whole coin. Let that sink in.
The math is simple but shocking. With only 21 million BTC ever to exist and an estimated 3-4 million already lost forever, the actual supply is considerably lower than the theoretical cap. And those coins still coming into circulation? They’ll trickle in slowly until 2140. That’s right – another century of waiting.
Bitcoin’s scarcity is staggering — fewer coins than millionaires and a supply schedule stretching into the next century.
BlackRock isn’t just talking about scarcity for fun. They’ve put serious money behind Bitcoin, launching the iShares Bitcoin Trust ETF (IBIT) in January 2024, which quickly became the largest Bitcoin ETF globally.
They’re also quietly increasing their stake in MicroStrategy, now owning 5% of the company’s shares – an indirect way to get more Bitcoin exposure without actually buying the coins directly.
CEO Larry Fink, once a crypto skeptic, now predicts Bitcoin could hit $700,000. That’s a 697% increase from the current price of $87,811. Not too shabby for a “digital pet rock,” huh?
The investment giant recommends a conservative 1-2% Bitcoin allocation in portfolios, positioning it as a diversifier alongside gold. The decentralized nature of Bitcoin provides protection against government-controlled inflation, making it an attractive option for wealth preservation. The recent price appreciation above $60,000 has further validated their thesis that Bitcoin serves as a hedge against traditional market uncertainties. They view it as a hedge against the breakdown of traditional stock-bond correlations. This perspective aligns with Bitcoin’s growing recognition as a non-sovereign store of value in today’s uncertain economic landscape.
Smart move, considering Bitcoin now ranks as the 7th largest asset globally by market cap.
Unlike gold, Bitcoin’s supply can’t increase when demand rises. It’s stubbornly inelastic. This supply-demand dynamic is exactly what BlackRock is betting on – a potential supply shock that could drive prices higher as institutional adoption increases.
The message is clear: Bitcoin isn’t just scarce. It’s really, really scarce. And BlackRock, with its $10 trillion under management, wants everyone to know it.
