The scarcity of Bitcoin comes not only from institutional purchases but also from its unique halving mechanism:
Every four years, there is a halving cycle: After the three halvings in 2012, 2016, and 2020, Bitcoin reached a historical high within 12-18 months. After the 2024 halving, the block reward will drop from 6.25 to 3.125 coins, directly halving the production capacity of new coins. More critically, the mining difficulty increases exponentially—from 24 seconds to produce 1 coin in 2012, to 192 seconds per coin by 2025. Ordinary miners are gradually being eliminated, and large mining companies and institutional mining pools dominate the computing power.
With the upgrade of mining hardware and the rise in electricity costs, the production cost of each Bitcoin has now exceeded $50,000. The "cheap chips" have disappeared, and retail investors need to pay a higher premium to enter, further amplifying the supply-demand imbalance in a bull market.
Therefore, with institutional backing and a unique halving mechanism, Bitcoin will not be absent from the bull market that occurs every four years.
