Bitcoin’s Big Problem: Not Enough Coins for Millionaires!
Imagine you’re at a party, and everyone wants pizza. But there’s only one pizza, and it’s not enough to go around. That’s kind of what’s happening with Bitcoin right now. The world’s biggest asset manager, BlackRock, just said there might not be enough Bitcoins for all the rich people in America who want one[1][5].
Why Bitcoin Can’t Make More Coins
Bitcoin is like a special club with a limited number of membership cards. There are only 21 million cards (Bitcoins), and once they’re gone, that’s it. No more can be made. This is different from things like gold, where you can find more if there’s a high demand[1].
Lost, Forgotten, or Destroyed Keys
But here’s the thing, not all the Bitcoin cards are actually in use. Some people have lost their cards (keys), forgotten where they put them, or even destroyed them on purpose. So, there are actually fewer coins available than we thought. Some people estimate that around 3 to 4 million coins are gone for good, making the party (market) even more crowded[1].
Millionaires Wanting Bitcoin: A Big Problem
Now, let’s say every millionaire in the U.S. wants just one Bitcoin. There wouldn’t be enough to go around. It’s like having a big family, and everyone wants the last slice of pizza. You can’t make more pizza (Bitcoin) just because everyone wants it. That’s what BlackRock means by a “supply shock”[1][3].
Why Bitcoin is Still Worth Investing In
Even though there might not be enough Bitcoins for everyone, BlackRock thinks it’s still a good thing to invest in. It could be like a special treasure that’s hard to find (store of value), something that’s valuable even when things are uncertain (hedge against political instability), and a way to join the digital future (play on the digital transition of goods and services)[1].
Volatility and the Future of Bitcoin
The Bitcoin party (market) is known for being a bit wild. It’s like a rollercoaster ride, going up and down a lot. But some people think that as more people join the party (investors), it could make the supply shock even bigger[3].
Navigating the Bitcoin Party
In simple terms, BlackRock is saying that Bitcoin’s special rules (limited supply) and more people wanting it (growing demand) could cause some big changes in the market. It’s like a game of musical chairs, and there might not be enough chairs (Bitcoins) for everyone. But this also means there could be some big opportunities for people who understand how the game works[1].
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Sources:
– dailyhodl.com
– westurner.github.io
– ground.news
