tl;dr
The largest asset manager in the world, BlackRock, has stated in a report that there is not enough Bitcoin to meet the demand from American millionaires. The report explains that Bitcoin's supply is hard-capped, unlike gold, and that there may be as few as 3 to 4 million accessible bitcoins due to l...
According to BlackRock analysts, Bitcoin's inelasticity to demand and the scarcity of available tokens make it a promising store of value and long-term investment. They highlight how Bitcoin's supply is hard-capped, contrasting it with gold. The report emphasizes that Bitcoin's inability to meet excess demand with increased supply sets it apart from gold. BlackRock's Model Portfolio Solutions team identifies several substantive arguments supporting Bitcoin's long-term investment merit, such as its potential as a global monetary alternative and hedge to US dollar hegemony. The analysts also underscore the scarcity of available bitcoins, suggesting that there may not be enough for every millionaire in the US to obtain one. At the time of the report, Bitcoin was trading at $85,381.
The report details how Bitcoin's supply is hard-capped, unlike gold, and may have as few as 3 to 4 million accessible bitcoins due to lost or destroyed keys. In contrast to gold, Bitcoin has no ability to meet excess demand with increased supply, as its inflation schedule is already set in stone. The report emphasizes that Bitcoin's predictable issuance schedule and limited supply contribute to its potential as a long-term investment.
BlackRock's Model Portfolio Solutions team sees several arguments supporting Bitcoin's long-term investment merit, including its potential as a store of value, hedge to US dollar hegemony, and a play on the digital transition of goods and services. The team highlights Bitcoin's possible role as a global monetary alternative and a hedge to political instability, providing unique sources of risk premia and diversification to traditional multi-asset portfolios. At the time of writing, Bitcoin is trading at $85,381.