Harrowing Figure Highlights How There Isn’t Enough Bitcoin To Go Around

Tony "The Bull" Severino

4 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin is a financial revolution in the making, for numerous reasons. But one of the attributes that give it the most value, is its digital, hard-coded scarcity. With just a 21 million BTC supply to ever exist, it is the hardest form of money on the planet.

However, according to one expert in the field, Willy Woo, the supply is actually a lot closer to 17 million. Because of this, the amount of BTC spread across the rapidly growing population evenly is minuscule, highlighting just how rare the cryptocurrency really is.

Honey, I Shrunk The BTC Supply: Why There’s Really Only 17 Million Left

Bitcoin is often compared to gold, earning it the “digital gold” moniker. Both are hard assets with extremely limited supplies that help tip the scales of supply and demand favorably toward demand.

This relative rarity, especially during a time when dollars are being printed, ballooning the fiat balance sheet by 20% this year alone, has caused the two hard assets to shine post-pandemic.

With uncertainty in the air, and a dollar on the brink of demise, investors are increasingly turning to gold and Bitcoin. Both assets beat out the stock market’s returns this year, but even Bitcoin has outperformed gold by more than three times, due to just how scarce the supply of the cryptocurrency is.

The blockchain network was coded to over time unlock only 21 million BTC – nothing more. But Bitcoin expert Willy Woo warns, there are actually far less.

Total supply of Bitcoin will not be 21m, it'll be around 17m as many coins died in the fight for being acknowledged as something valuable in the early days.

This means 0.002 BTC per person on the planet.

— Willy Woo (@woonomic) October 28, 2020

Woo says that as many as 4 million BTC were lost in the “fight for being acknowledged as something valuable in the early days.”

What Woo means by this, is that the earliest holders of Bitcoin had no idea what it would ultimately become in terms of value. Would you have taken perfect care of something that was virtually worthless? The answer is no, and potentially millions of BTC are lost forever due to misplaced private keys, death, or by sending coins to the wrong address.

Every decimal point Bitcoin became a little more worth remembering | Source: BLX on TradingView.com

Bitcoin Whales Absorbing Supply Leaves Even Less For Small Fish

If there ever fewer BTC than expected, the asset’s rarity is even more pronounced and important to its valuation. As capital comes in, it will be spread across even fewer coins, with less coins overall ever able to be sold into the market lowering prices.

Data shows that the number of whale wallets with 1000 BTC or more has spiked to the highest levels ever, so any remaining supply is dwindling rapidly. That’s not to say that these whales won’t end up selling, but with Bitcoin’s bull market just starting, it could be a while before those hands stop holding strong.

Recently, due to the sudden surge in businesses adding BTC to corporate treasure reserves, it is said that as few as 24 companies alone own as much as 3.6% of the BTC supply.

If that is the case, and these whales and businesses continue to absorb the supply, there won’t be any left for the little fish.

According to Woo, at the 17 million figure he cites, there will only ever be enough Bitcoin for the global population to have 0.002 BTC if spread out evenly.

But as wealth distribution in the past has shown, and even a decentralized asset cannot escape, businesses and the wealthy will end up buying up the lion’s share of what’s left out there for BTC, leaving even less to go around for the always growing global population.

The math alone makes Bitcoin potentially the most powerful asset in human history, and one that will continue to prove it can command the value is trades at is it continues to rise.

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.