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BlackRock, the world's largest asset manager, highlighted an exciting issue with the supply and demand for bitcoin. According to their analysts, if every millionaire in the US wanted to own just one bitcoin, there wouldn't be enough for them.
The reason for this shortage lies in the limited overall supply of Bitcoin, which is capped at 21 million tokens. However, it is estimated that 3-4 million Bitcoins are permanently lost due to forgotten keys or destroyed wallets. This leaves only 17-18 million Bitcoins available for institutional and retail investors.
BlackRock analysts Brett Wiegand and Michael Gates noted that the Bitcoin shortage is a key factor in its price proposition. Unlike gold, the supply of Bitcoin cannot be increased to meet demand, making it a unique store of value.
This shortfall, combined with increasing demand from institutional investors, could increase the long-term value of bitcoin. The BlackRock modular portfolio solutions team sees several 'compelling arguments' supporting the investment value of bitcoin, including its potential as a global monetary alternative and hedge against political instability