Bitcoin Scarcity Becomes Dramatic as Supply Cap Sparks Debate  

• Bitcoin’s finite supply intensifies scarcity concerns, especially as mainstream adoption continues to grow and demand escalates significantly. 
• Only 1.82% of Bitcoin addresses hold an entire coin, highlighting the growing rarity of owning even a single Bitcoin. 
• BlackRock’s recent disclaimer about Bitcoin’s supply cap stirred controversy, reaffirming the cryptocurrency’s value tied to its predictable scarcity. 

As Bitcoin moves further into mainstream adoption, its finite supply is becoming increasingly significant. Bitwise CEO Hunter Horsley recently pointed out that Bitcoin’s scarcity could soon feel “dramatic.” With only 21 million coins available, the distribution of Bitcoin among potential investors is stark. According to Horsley, there are approximately 58 million millionaires globally, yet there is only enough Bitcoin for about one in three to own a single coin. 

Debate Over Bitcoin’s Supply Cap Resurfaces 

Bitcoin’s capped supply has been central to its appeal, with its predictability contrasting sharply with traditional assets. However, recent developments have reignited debates over this fundamental aspect. Investment giant BlackRock drew attention with a disclaimer in an educational video suggesting Bitcoin’s maximum supply could theoretically exceed 21 million coins. 

While this caused significant controversy, BlackRock’s Adam Back clarified that the statement was merely a legal formality. Bitcoin’s decentralized network ensures that its supply remains unchanged, as each node verifies transactions and total supply. 

 Majority of Bitcoin Addresses Hold Small Balances 

The rarity of owning even one full Bitcoin is evident from the latest data. As revealed by BitInfoCharts, today only 1.82 percent of Bitcoin addresses whole consequent coins are stored. Further, only 8.2% of addresses contain over 0.1 Bitcoin demonstrating the account’s limited availability. 

When assets are greater, the numbers are even starker for those who own them. The study also reveals that less than one percent of Bitcoin holders have more than 10 Bitcoins, which cost a whopping $1 million from today’s market price. 

The price of Bitcoin has again neared $100 000, which has made conversations about the bitcoin standard based on scarcity more prominent. Critics have advocated that because it is limited it helps to act as an inflation measure and as a reserve currency. Because the price of the cryptocurrency does not increase when people demand it more and its supply remains limited, it is used by institutional and individual parties. 

In fact, both the timeline and the nature of the supply of digital currency have always been one of its biggest draws. Any proposals to change the cap are immediately shot down within the community because they directly challenge the premise of what Bitcoin offers.