BlackRock Sounds Alarm: Bitcoin Supply Crisis for Global Millionaires
BlackRock, the world’s largest asset manager, has a dire warning: if every US millionaire wanted to own just one Bitcoin, there wouldn’t be enough to go around.
In a February 26 report, BlackRock analysts Brett Wager and Michael Gates pointed out Bitcoin’s scarcity, saying the actual circulating supply is far lower than the 21 million cap.
3 to 4 million BTC are lost forever due to forgotten keys or destroyed wallets.
That leaves only 17 to 18 million Bitcoin available, for institutional and retail investors alike.
As global interest grows, Bitcoin’s finite supply could cause a severe supply shock.
With geopolitical instability, rising sovereign debt, and excessive government spending driving demand, BlackRock sees Bitcoin as a hedge against economic uncertainty.
JUST IN: Blackrock Warns of Bitcoin Supply Shock—Not Enough BTC for Every Millionaire: Blackrock warns that bitcoin’s scarcity is more severe than widely believed, predicting that if every U.S. millionaire sought just one BTC, there wouldn’t be enough to meet demand. Blackrock… pic.twitter.com/Uffy3S8GR3
— Rogue (@RogueBigFootX) March 5, 2025
Institutional Inflows Are Tightening Bitcoin Supply
Approval of Bitcoin exchange-traded products (ETPs) in 2024 has accelerated institutional adoption, and we’ve seen a big spike in BTC inflows.
Spot Bitcoin ETFs from BlackRock, Fidelity, and Ark Invest have collectively bought up billions in BTC.
Institutional participation could smooth out Bitcoin’s crazy price swings, making it more appealing to risk averse investors.
As big asset managers keep buying Bitcoin, retail investors may face increasing scarcity in the coming years.
With supply tightening and demand rising, BlackRock says there’s a strong long-term case for Bitcoin in your portfolio.
Bitcoin’s Intrinsic Value Gains Recognition
BlackRock’s report also addressed a long standing criticism: Bitcoin has no intrinsic value. The authors argue that Bitcoin’s key characteristics—fixed supply, decentralization, and institutional adoption—make it a stable financial asset in today’s world.
blackrock warns of Bitcoin supply shock. not enough $btc for every millionaire to own just 1 coin. massive scarcity: even if every u.s. millionaire wanted just 1 $btc, demand would exceed available supply.
— aixtn (@ai_xtn) March 5, 2025
Unlike fiat currencies, Bitcoin can’t be printed by the Fed.
Its decentralized network provides security and freedom from centralized financial institutions.
As AI and digital finance grows, Bitcoin’s role as a non-sovereign store of value is being recognized more and more.Big tick.
BlackRock’s stance reinforces Bitcoin’s growing legitimacy among institutional investors, suggesting that its scarcity could drive significant price appreciation in the long run.
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