BlackRock, the world's largest asset management firm, highlighted the fundamental scarcity issue of Bitcoin and its impact on the wealthy.
According to a report published by "The Street" and reviewed by "Al Arabiya Business," fund analysts clarified that the total limited number of Bitcoins is 21 million units, with only 3 to 4 million of them available for trading. They pointed out that this limited supply is not enough to meet the potential demand from millionaires.
In their analysis, the multi-asset portfolio managers at BlackRock, Michael Gates and Brett Wager, wrote: "As many know, there is a projected timeline for the issuance of new Bitcoins until 2140, with a pre-programmed maximum of 21 million units."
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They added that what many do not realize is that the actual quantity available for trading is likely much lower, with conservative estimates suggesting that between 3 to 4 million Bitcoins issued and visible on the blockchain are considered permanently inaccessible, due to lost or forgotten private keys or any form of damage, making them out of reach for trading.
The experts explained that, unlike gold, the scarcity of Bitcoin affects the ability of the wealthy to access this asset, adding: "To illustrate how limited the Bitcoin available is, if every millionaire in the United States asked their financial advisor to buy 1 Bitcoin, there would not be enough to meet the demand."
The United States has about 22 million millionaires, with roughly one in every 15 citizens possessing more than a million dollars, according to the latest Global Wealth Report issued by "UBS." This means that the potential demand for Bitcoin from the wealthy in the United States.
