Bitcoin Scarcity Will Become "Dramatic" When the Cryptocurrency Becomes More Mainstream, Bitwise CEO Believes

Bitwise CEO Hunter Horsley believes that Bitcoin scarcity is going to start to feel "dramatic" when the cryptocurrency becomes more mainstream.

Bitcoin's scarcity is going to become more apparent as the cryptocurrency gains mainstream adoption, according to Bitwise CEO Hunter Horsley.

"There are estimated 58 million millionaires globally. There’s only enough Bitcoin for ~ 1 in 3 of them to have one," he said.

The executive was referring to the fact that the total supply of Bitcoin is capped at 21 million coins. With the cryptocurrency currently trading at around $100,000, this means that all of the available BTC is valued at roughly $2.1 trillion.

At the time of writing, there are around 19.2 million BTC in circulation, with the remaining 1.8 million coins yet to be mined. The new BTC supply is released into the network gradually through the process of mining, which also serves to secure the Bitcoin blockchain.

Bitcoin's scarcity is one of the key factors that have driven its price上涨 in recent years. As more people become aware of the cryptocurrency and begin to acquire it, the scarcity of Bitcoin is bound to become more keenly felt.

"This is going to start to feel dramatic. Get ready for the FUD (fear, uncertainty and doubt) to try and explain it away," Horsley added.

BlackRock's 'Bitcoin supply cap' disclaimer sparks controversy

As reported by U.Today, investment giant BlackRock recently caused a stir among the crypto community with a disclaimer in its educational video, which stated that Bitcoin's maximum supply could be expanded beyond the aforementioned 21 million cap.

Such suggestions are akin to heresy within the Bitcoin community since the cryptocurrency mainly derives its value from its scarcity. The fact that the supply of Bitcoin is both transparent and predictable makes it an attractive alternative to other assets.

However, Blockstream co-founder Adam Back, who also helped to create Hashcash, the proof-of-work used by Bitcoin, was quick to clarify that the disclaimer is just meaningless legal coverage.

"The disclaimer is just covering the possibility of a Bitcoin hard fork changing the rules, which is something that happens from time to time (e.g., Bitcoin Cash)," Back said.

"Each node operating on the network will be able to confirm that Bitcoin's total supply remains unchanged. Any changes would require a new chain and new rules," he explained.

Owning full Bitcoin is still a rare occurrence

According to data provided by BitInfoCharts, only a minuscule portion of all Bitcoin addresses (1.82%) hold an entire coin. In addition, only 8.2% of all addresses in existence have more than 0.1 BTC.

Only 0.25% of addresses hold more than 10 BTC, which would be roughly $1 million at current prices.

According to CoinGecko data, the price of Bitcoin is approaching the $100,000 price mark once again. Bitcoin bulls argue that the price of the cryptocurrency will keep rising due to the token's finite supply.