Have we seen Bitcoin’s curtain call, or the opening act to its most incendiary performance to date? Put aside the data visualizations and all the fancy talk for just a hot second. Now, allow us to make the case for you, and how exactly this upcoming Bitcoin supply shock may very well revolutionize your economic destiny.
Is Bitcoin Becoming Too Scarce?
Jeremie Davinci, one of the original believers in Bitcoin, is once again warning of an impending danger. And he’s referring in part to the quickly disappearing Bitcoin supply on the exchanges. Down to a mere 2.4 million coins left, per CryptoQuant. That sounds like a lot, right? Wrong. Think of it like this: imagine a limited-edition painting. The rarer the copy, the greater worth each copy has, creating an artificial scarcity.
Here's the kicker: it's not just retail investors scooping up Bitcoin. Institutional giants are diving in headfirst. Just BlackRock’s new IBIT ETF has billions of inflows. These are not your typical, mad-day trader types; these are long-term institutional investors with big wallets. They’re not in it to flip for a quick profit. They’re stacking, removing Bitcoin from circulation and putting it out of reach of the open market.
They're HODLing too! This isn’t merely a story of what might happen, but rather an example of the true change in the dynamics of the market. It’s about acknowledging the scarcity of Bitcoin and preparing yourself to compete with that scarcity.
Now, you might be thinking, "So what? I'm not a millionaire. How does this affect me?"
Imagine Bitcoin as digital real estate. The supply is fixed. As demand increases, prices rise. If you are being or feel priced out of the housing market, you can’t experience equity growth in the home. The same principle applies to Bitcoin. The cheaper you are to buy, the longer you take for each coin you mint, the more it costs to get just .5 of a coin. This isn’t only a path to wealth, but a way to protect your purchasing power in an inflationary environment where purchasing power is evaporating.
Will Scarcity Fuel Bitcoin's Price?
Samson Mow, the CEO of JAN3, has been betting big and making big predictions. We’re looking at a double shock…where demand increases, but supply decreases. We're seeing that play out in real-time. Since then the floodgates have opened with institutional investment, all thanks to the new spot Bitcoin ETFs. And mark your calendars for the next halving event in April 2024! It will cut the Bitcoin mining reward in half, cutting new Bitcoin creation by a huge margin.
This isn’t just a game of whack-a-mole with dollars on a spreadsheet. It's about the psychology of scarcity. When investors expect that an asset is getting scarcer, they’re incentivized to purchase and hold, amplifying the price appreciation. Interestingly, basic economics is one of the unsung heroes behind smart crypto adoption. Here, sentiment and narratives can quickly move markets — often at lightning speed.
Consider this: Mow initially suggested Bitcoin could hit $1 million. Though that may sound like a naive utopian wish, take a look at what’s driving that potential. If demand continues to outstrip supply, we may soon face very different circumstances. Provided that this institutional adoption continues, these numbers will begin to seem less ambitious and more achievable.
Volatility is inherent in the crypto market. Bitcoin is not a get-rich-quick scheme. It's a long-term investment with significant risks. Only invest what you can afford to lose.
What Can You Do About It?
So, what's the takeaway? Don't panic. 4. Don’t FOMO yourself into a regrettable decision. Instead, educate yourself!
The potential supply shock isn’t just a matter of headcount. It’s a matter of opportunity. It’s valuing the genuine potential Bitcoin has to disrupt the establishment’s custodial banking system while empowering the individual. It is about your financial future.
- Do your research: Understand the fundamentals of Bitcoin, the technology behind it, and the factors driving its price.
- Start small: You don't need to buy a whole Bitcoin. You can buy fractions of a coin. Start with a small amount and gradually increase your holdings as you become more comfortable.
- Secure your Bitcoin: Don't leave your Bitcoin on an exchange. Transfer it to a secure wallet that you control.
- Think long-term: Bitcoin is a volatile asset. Don't expect to get rich overnight. Be prepared to hold your Bitcoin for the long term.
I was right to see that Donald Trump’s surprise re-election to the White House triggered Bitcoin’s all-time high of $109,100 on January 20, 2025. So, what do you plan on doing?
Don't just stand by and watch. Take control of your financial destiny. The future of Bitcoin – and your financial health – could hinge on it.
Don't just stand by and watch. Take control of your financial destiny. The future of Bitcoin – and your financial well-being – may depend on it.