There is a secret in the Bitcoin market that most people aren’t prepared for. We live in a capitalistic world where there isn’t a limited amount of anything to buy. They will always make more products in order to increase profits. That new iPhone, TV, or car might be currently sold out, but you can still place an order and you’ll still receive your item just at a later date. People are never told that they simply can’t buy the product. Bitcoin is exactly the opposite. The harsh reality is that there is much less Bitcoin available to buy than most people think and this will result in a time when it will be incredibly difficult or near impossible to buy it. Your only option will be to pay more, resulting in Bitcoin’s price skyrocketing.
The first thing you need to know about Bitcoin is that it has a hard cap of 21 million coins that will ever be created. Unlike fiat currencies like the dollar which can be printed on demand for anything they want, this cannot be done on Bitcoin. While the dollar is printed at a constantly increasing rate each year, Bitcoin on the other hand reduces its issuance inflation rate every four years. This is done via the Bitcoin halving. While your purchasing power with the dollar is always decreasing; the exact opposite is happening with Bitcoin. Your purchasing power is always increasing and you are actually being rewarded for putting your savings into Bitcoin.
Now that you know there will only be a maximum of 21 million Bitcoin created, the next thing you need to understand is that there will never be anywhere near that amount of BTC available on the market. The consensus is that several million Bitcoin have been lost forever, resulting in the real amount of Bitcoin in circulation being closer to 14–15 million.
You might be asking yourself, where did all these millions of Bitcoin go?
Bitcoin’s mysterious founder, Satoshi Nakamoto, was able to successfully mine millions of Bitcoin in the early days of the blockchain. However, a few years after Bitcoin’s creation Satoshi decided to walk away from the Bitcoin project never to be heard from again. This is where things become interesting. Since the creation of the Bitcoin network, Satoshi never touched his Bitcoin wallets from these early days of mining. Meaning that millions of Bitcoin remain dormant. Many people even consider these coins to be gone forever. Perhaps he burned them, lost them, or there is even a theory that Satoshi passed away. While there is a possibility that someday Satoshi could return and use these Bitcoin. Most people consider these Bitcoin gone forever. This already drops the real amount of Bitcoin available to a number much lower than 21 million.
However, the plot still thickens from here.
When Bitcoin was first created it actually was worthless and didn’t have a monetary value. You couldn't even give it away to most people. This means that people who actually did own it didn’t take the precautions or care to protect their Bitcoin that they would have if they would have known it would someday be worth $40k per Bitcoin.
This means that wallets and passwords were lost. Computers broke or were thrown away. Or people simply forgot that they even had Bitcoin. There have been several stories about how people suddenly realized they had Bitcoin on their computers that were thrown out that would currently be worth millions or even hundreds of millions of dollars.
With Satoshi not using his wallets, and an endless amount of people losing access to their Bitcoin during the early day. It is estimated that only about 14 to 15 Bitcoin will ever be available.
With that said, Bitcoiners are different than regular people. We have fallen down the rabbit hole of Bitcoin, and have even taken it on as part of our personality. For these people, it would take an astronomical amount of money for them to even consider selling their Bitcoin. Meaning that people who want to buy Bitcoin will have to keep increasing their offer until it is finally accepted.
This all happened before Bitcoin even went mainstream. Now Wall Street, companies, countries, and investment funds such as BlackRock are finally getting into Bitcoin. They will get their Bitcoin, but it will be at a very steep price. Bitcoin is much more scarce than most people realize, and the next few cycles are going to be very interesting to watch. I hope you have already packed your Bitcoin bags.
How about you? How many Bitcoin are “really” available?
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