FameEX Hot Topics | BlackRock Warns of Bitcoin Supply Crunch—Insufficient BTC for Every Millionaire

BlackRock, the world’s largest asset manager, has issued a stark warning about Bitcoin’s scarcity, suggesting it is even more severe than widely believed. The firm predicts that if every U.S. millionaire sought to acquire just one Bitcoin, there would not be enough supply to meet the demand. This insight underscores Bitcoin’s limited availability and its growing appeal as a scarce digital asset in investment portfolios.

In a report published on February 26, BlackRock analysts Brett Wager and Michael Gates explored Bitcoin’s potential role in multi-asset portfolios. They argued that Bitcoin holds long-term investment merit for specific investors and can serve as a valuable diversification tool. According to the report, Bitcoin offers unique and additive sources of diversification, making it an increasingly attractive asset class for institutional and retail investors alike.

The analysts pointed to several macroeconomic and geopolitical factors that could further drive interest in Bitcoin. They highlighted rising sovereign debt, excessive government spending, and global instability as key elements that could push investors toward decentralized assets. Additionally, they suggested that a more Bitcoin-friendly U.S. administration could remove regulatory roadblocks, leading to increased innovation and infrastructure development within the digital asset industry.

The report also emphasized the impact of Bitcoin exchange-traded products (ETPs), which launched in 2024 and have since witnessed significant inflows. BlackRock noted that the increased participation of institutional investors could help stabilize Bitcoin’s historically volatile price movements. Moreover, the authors stressed Bitcoin’s extreme scarcity, pointing out that its real circulating supply is considerably lower than the theoretical 21 million cap. They estimated that between 3 to 4 million bitcoins are permanently inaccessible due to lost or forgotten private keys.

Addressing skepticism regarding Bitcoin’s intrinsic value, BlackRock refuted critics’ claims that the asset lacks fundamental worth. The firm asserted that Bitcoin’s decentralized nature, fixed supply, and increasing institutional adoption provide it with real and attractive sources of value. In an evolving financial landscape shaped by debt, digital transformation, and artificial intelligence, BlackRock views Bitcoin as a resilient and compelling investment option that will likely gain broader recognition over time.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.