Although Satoshi Nakamoto never made mention of a supply cap in his/her magnum opus, the original Bitcoin whitepaper, this facet of the cryptocurrency’s existence has quickly become one of utmost importance. In fact, many have argued that the fact that there will only be 21 million BTC in existence is the key driver behind Bitcoin’s value, especially in a world rife with fiat-induced inflation.
There’s $11 Worth Of Bitcoin For Each Human Alive
According to napkin math completed by Hodlonaut, a Netherlands-based Bitcoin enthusiast, there is a mere 300,000 satoshis (0.003 BTC) available for every human alive today. At current market valuations, such a crypto sum is valued at $11 — the minimum hourly wage in a number of U.S. states.
If everyone on the planet had an equal number of bitcoin, we’d each have 0.0003 bitcoin (300,000 sats). Today you can buy this amount for just over a dollar. It won’t always be this way. https://t.co/JheGzo9g4t
— dennis pourteaux 🌱 (@pourteaux) February 24, 2019
While $11 in investable disposable income may be hard to obtain for some, many crypto enthusiasts responded to the noticing by remarking that it would be unwise for prospective investors to not go above and beyond their 0.003 BTC allocation.
Josh Rager, an advisor to TokenBacon and BlackWave, even once noted that after the current market cycle, few in the “general population” may have the financial means to afford an entire BTC, adding that it would be wise to accumulate Bitcoin before it could be too late.
There’s Not Enough Bitcoin To Go Around
This comes as sentiment has mounted regarding the fact that there simply isn’t enough Bitcoin to go around.
Willy Woo, an Australian crypto researcher, known for his in-depth technical analysis of cryptocurrencies, recently remarked why he expects for Bitcoin’s market capitalization to “easily exceed” surpass that of traditional gold.
Woo, citing a space-related article outlining the infantile off-Earth mining industry, noted that mathematical scarcity, which Bitcoin enlists, “beats perceived scarcity.” Referencing the article, which claimed that trillions, even quadrillions & quintillions of dollars worth of gold and other precious metals could exist in near-Earth asteroids, Woo noted that “perceived scarcity comes only from the technological limitations of today.”
In other words, gold’s hegemony as the de-facto store of value may be usurped over time, especially as humanity’s relentless demand for gold continues and as on-Earth supplies wane, creating a gold rush in outer space.
Misir Mahmudov, the supposed brother of short-term crypto bear Murad Mahmudov, echoed Woo’s pro-scarcity sentiment in a different context. Misir, a student of Austrian Economics, noted that even if every millionaire in the U.S. proper wanted to obtain one BTC, “they wouldn’t be able to.” The crypto enthusiast added that there will always be fewer BTC than millionaires in the world, accentuating Bitcoin’s hard cap of 21 million coins.
Although Misir’s statement may seem flawed, especially considering that a CNBC report claims 10.7 million Americans have seven-figure net worths, this crypto researcher is likely taking other factors into account. For example, a research paper from Chainalysis, a New York-headquartered crypto analytics unit, revealed that up to 3,790,000 BTC could be lost to the ether.
These aforementioned factors have left many crypto insiders and decentralists, like Nick Szabo, Max Keiser, the Winklevoss Twins, Lou Kerner, among others, to claim that it is only a matter of time before BTC gains traction as a digital store of value.
But will it? For now, no one can be all too sure.