Bitcoin‘s Scarcity Fuels Long-Term investment Thesis, Analyst Says
NEW YORK – As stock market valuations climb to historically high levels, a growing number of investors are seeking alternative assets to safeguard and grow their wealth. Among thes, Bitcoin stands out due to its inherent scarcity, positioning it as a possibly notable long-term store of value, according to a new analysis.
The appeal lies in Bitcoin’s capped supply. Unlike conventional currencies subject to inflationary pressures, only 21 million Bitcoins will ever be created. currently, approximately 19 million Bitcoins are in circulation, a factor analysts believe mirrors the characteristics of established safe-haven assets like gold and land. This limited supply distinguishes Bitcoin as a unique asset in a world increasingly reliant on digital finance.
For millennia, gold and land have held intrinsic value, recognized globally. The emergence of Bitcoin represents a rare instance of a new asset achieving widespread recognition of value simply through its existence and underlying technology. Despite its relatively short history, Bitcoin’s market capitalization is rapidly gaining traction.
Currently, the total value of land worldwide is estimated to be in the hundreds of trillions of dollars, while gold boasts a market cap of around $24 trillion. In contrast, Bitcoin’s total market capitalization currently sits under $2 trillion, indicating substantial potential for growth. This disparity suggests Bitcoin has considerable room to expand its market share and potentially rival established store-of-value assets over the coming decades, even amidst inevitable price volatility.The finite supply cap remains a core driver of its long-term investment potential.
