The world’s largest asset manager just dropped a bombshell about Bitcoin. BlackRock warned that there simply aren’t enough bitcoins to go around for every millionaire in the United States to own just one. Let that sink in.
With Bitcoin’s hard cap of 21 million coins and an estimated 3-4 million already lost forever, the math doesn’t add up for the wealthy. America has roughly 22 million millionaires. That’s one in every 15 U.S. citizens sitting on seven figures.
But Bitcoin’s current circulating supply? Only about 19.83 million. And it’s shrinking, effectively. Do the math. It can’t work.
BlackRock issued this warning in their report “Why Bitcoin? A Model Portfolio Builder’s View.” They’re highlighting what crypto enthusiasts have preached for years – scarcity drives value. Fixed supply. Inelastic demand. Economics 101, folks.
Meanwhile, BlackRock’s CEO Larry Fink isn’t exactly bearish. He’s predicting Bitcoin could hit $700,000 – a staggering 697% increase from current levels around $87,811. Sovereign wealth funds might drive this surge. Must be nice having a crystal ball that prints money.
The asset manager’s Bitcoin ETF, iShares Bitcoin Trust (IBIT), has been a rollercoaster ride. It’s the largest Bitcoin ETF globally with $39.62 billion assets under management.
But it recently experienced a record $1.17 billion outflow in one week. Ouch. Another $78 million left the following Monday. Investors are fickle.
BlackRock recommends average investors allocate 1-2% of portfolios to Bitcoin. They compare the risk to holding those “Magnificent Seven” tech stocks. Nothing too crazy. Just enough to dip your toes in digital gold.
Galaxy Digital’s Mike Novogratz believes Bitcoin could match or even exceed gold’s market cap within the next 5-8 years, further validating BlackRock’s position on Bitcoin’s potential.
The recent price surge past $60,000 has only intensified the supply-demand imbalance that BlackRock is warning about, making their concerns even more relevant to current market conditions.
The periodic halving events reduce the rate of new Bitcoin creation, further intensifying the scarcity that drives its value proposition.
The implications are clear. Supply squeeze. Price appreciation. More competition for limited coins. The long game looks promising for Bitcoin hodlers. Institutional money is coming in waves.
The smart money isn’t asking if anymore – they’re asking how much.
