Changpeng Zhao (CZ), former CEO of Binance, recently made an important point about Bitcoin which is that it is limited in its supply. BTC news cycle and the internet saw some delightful reactions from the crypto space.
His words have again raised the topic within the crypto community concerning Bitcoin’s max supply, which is 21 million. Michael Saylor, the founder of MicroStrategy, backed up CZ by stating that Bitcoin is better than fiat currency. He said it should be adopted as a monetary system.
BTC News: CZ Highlights Bitcoin’s Scarcity
In response to this, CZ went to X (formerly Twitter), expressing that 19.8 million Bitcoins have already been mined. He also added that bitcoin is “controlled by math.” He further said that, this currency was created by Satoshi Nakamoto to eliminate inflation or manipulation from central banks.
In a veiled critique of fiat currencies, CZ noted that Bitcoin’s mathematical limits ensure no further coins can be minted once the cap is reached. This is unlike the traditional money systems that are prone to overprinting.
Michael Saylor Echoes CZ’s Sentiment
Michael Saylor, a vocal Bitcoin proponent and founder of MicroStrategy, responded to CZ’s tweet with a succinct comment. He said “Running (out of) #Bitcoin.” Bitcoin supply is scarce, and this statement has described the increasing institutional and individual demand for it.
MicroStrategy, Saylor’s firm, has recently increased its Bitcoin portfolio by purchasing more of the currency. The firm currently owns 423,650 BTC worth about $41.5 billion and bought at an average price of $98,783 per BTC.
MicroStrategy is not alone in its Bitcoin-focused strategy. Other large-scale organizations, that are also acquiring the cryptocurrency include Galaxy Digital Holdings, Marathon Digital Holdings, Hut 8 Mining Corp, and CleanSpark Inc.
Implications of Bitcoin’s Scarcity
CZ’s and Saylor’s warnings arrive at a pivotal moment as Bitcoin experiences increasing institutional demand. A lot of investors are looking forward to establishing their stakes before the limited available supply reduces even more.
The fixed supply of Bitcoin and its deflationary nature have made it a prime candidate for institutional portfolios as a hedge against inflation and currency devaluation.
Saylor’s remarks also align with Bitcoin’s unique appeal as a store of value. With its scarcity hard-coded into its design, Bitcoin presents an investment opportunity that fiat currencies and traditional assets cannot replicate.
CZ’s call to action encourages both retail and institutional investors to recognize the long-term value of Bitcoin as a scarce resource. As global adoption grows, the competition to secure Bitcoin is expected to intensify, further driving demand and solidifying its position as a leading financial asset.
BTC News Impacting Bitcoin’s Current Market Momentum
CZ’s remark on Bitcoin scarcity comes at a time of intense market fluctuations in Bitcoin. Since its skyrocketing price rise over the $100,000 mark, Bitcoin has remained steady in its price. Recent BTC news shows that it attracts more investors.
The crypto community views Bitcoin’s programmed scarcity as a revolutionary advancement over traditional financial systems, cementing its role as “digital gold.”
Meanwhile, despite market volatility, Saylor’s advocacy for Bitcoin as the future of money is reflected in MicroStrategy’s continued accumulation of the asset.
The ongoing focus on Bitcoin scarcity highlights the critical importance of understanding the mechanics behind its design and its potential impact on the global economy. As more coins are mined and demand rises, the conversation about Bitcoin’s role in the financial landscape is expected to grow.
