FameEX Hot Topics | BlackRock Warns of Bitcoin Shortage—Not Enough 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 commonly believed. The firm predicts that if every U.S. millionaire sought to acquire just one Bitcoin, the supply would fall far short of meeting the demand. This highlights Bitcoin’s extreme scarcity and its growing status as a highly sought-after digital asset.

In a report published on February 26, BlackRock analysts Brett Wager and Michael Gates examined Bitcoin’s role in multi-asset portfolios. They argued that Bitcoin offers long-term investment value for certain investors, serving as a powerful diversification tool. The report emphasized Bitcoin’s unique ability to provide additive sources of diversification, making it increasingly attractive to both institutional and retail investors.

The analysts pointed to various macroeconomic and geopolitical factors that could fuel further interest in Bitcoin. They cited rising sovereign debt, excessive government spending, and global instability as key drivers pushing investors toward decentralized assets. Additionally, they noted that a more Bitcoin-friendly U.S. administration could remove regulatory barriers, fostering greater innovation and infrastructure development in the digital asset industry.

BlackRock also underscored the growing influence of Bitcoin exchange-traded products (ETPs), which debuted in 2024 and have since seen substantial inflows. The firm suggested that increased institutional participation could help stabilize Bitcoin’s historically volatile price movements. Furthermore, the report stressed Bitcoin’s extreme scarcity, noting that its real circulating supply is significantly lower than the theoretical 21 million cap. Analysts estimated that 3 to 4 million bitcoins are permanently inaccessible due to lost private keys.

Addressing skepticism about Bitcoin’s intrinsic value, BlackRock challenged critics who argue the asset lacks fundamental worth. The firm asserted that Bitcoin’s decentralized nature, fixed supply, and rising institutional adoption make it a valuable financial instrument. In a rapidly evolving landscape shaped by debt concerns, digital transformation, and artificial intelligence, BlackRock views Bitcoin as a resilient and compelling investment option that is poised for broader acceptance in the future.

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