While Bitcoin and gold are both limited in supply, the former has more supply restrictions, which could be the reason for its increasing value. Every year gold’s supply increase as people find more sophisticated machines to cop the yellow metal, Bitcoin’s reserves seems to shrink as time goes by.
Experts believe that Bitcoin would be so expensive in the future, people only need around 0.01 BTC to become very rich. Another problem is that people are starting to hoard Bitcoin’s supply, especially institutional buyers buying hefty chunks of the digital assets and are refusing to sell. This shows that Bitcoin is going institutional, and regular investors might not afford the asset soon.
Experts predict exhaustion of Bitcoin’s supply
Experts see Bitcoin’s supply reducing drastically in 10 years, meaning that people would have to pay more to get even the smallest portion of Bitcoin. While 0.01 might worth only $500 presently, analysis shows that the crypto’s distribution and limited supply could eventually cause even 0.01 to worth $1 million someday.
The limited supply would help those holding the asset make more gains on their digital assets. Credit Suisse’s recent statistics show that the world has over 50 million individuals with their net worth of over $1 million. The data was calculated by measuring the individual’s statistics while deducting debts from their worth.
The statistics show that those individuals make up only 1% of the globe’s population but controlling around 40% of the world’s wealth. This clearly shows that wealth is not evenly distributed, creating a large gap between the rich and the poor.
The data showed that over 170,000 had more than $50 million. Around the 1/3 of this are worth up to $100 million, while lesser than 5,000 had a net worth of over $500 million. The industry has to face some new facts regarding Bitcoin’s supply as the industry has mined over 18 million BTC, with only 2 million left untapped.
Miners will exhaust Bitcoin’s supply in the next ten years
Within the next few years, the crypto space would likely have mined around 20 million BTC, which is around 99% of the total supply, leaving people to rush resources from those who offer to sell them at a very high price.
While over 600 million individuals have a net worth of $100,000 and higher, there would be a severe tussle to the asset’s purchase. Even when Bitcoin is still being mined regularly, the value still skyrockets, which could be much worse when there is no more supply.
The new prediction shows that if crypto holders manage to cop at least 0.01 BTC, it could assure them of millionaires in the nearest future. When investors eventually exhaust the available cryptocurrencies left, the value might be one of the world’s highest. The King coin’s limited supply helps it grow against the dollar due to the latter’s excessive availability in an economy. Fed’s printing of more money causes inflation in an economy, making money lose value within a short period.
