Bitcoin is the first asset in history “that is scarcer than gold”, CNBC says

In a recent article, CNBC claimed that Bitcoin is the first asset in history “that is scarcer than gold.” This statement reflects the growing recognition of Bitcoin’s unique properties as a digital store of value that cannot be inflated, manipulated or confiscated by any central authority.

Bitcoin’s scarcity is determined by its fixed supply of 21 million coins, which will be reached by the year 2140. Unlike gold, whose supply is unknown and depends on mining activity, Bitcoin’s supply is transparent and predictable. Moreover, Bitcoin’s scarcity is enhanced by its high demand, as more investors, institutions and countries adopt it as a hedge against inflation and currency devaluation.

Bitcoin’s scarcity gives it a competitive edge over other assets, as it ensures that its purchasing power will increase over time. As CNBC noted, “Bitcoin is the only asset that has a hard-coded limit to its supply. Gold doesn’t have that. There’s always more gold in the ground.” This means that Bitcoin is more resistant to the effects of monetary expansion and debasement that plague fiat currencies and precious metals.

Bloomberg says this is the start of a fresh crypto Supercycle that will push Bitcoin above $500,000.

Bloomberg, the leading financial media company, has published a report that predicts a new crypto Supercycle that will propel Bitcoin to unprecedented heights. According to the report, the current market conditions are favorable for a massive surge in demand and adoption of cryptocurrencies, especially Bitcoin, which is seen as the most reliable and secure digital asset. The report cites several factors that support this bullish outlook, such as:

• The increasing institutional and retail interest in Bitcoin as a hedge against inflation and currency devaluation.

• The growing innovation and development of the crypto ecosystem, including decentralized finance (DeFi), non-fungible tokens (NFTs), and layer-2 solutions.

• The rising awareness and acceptance of Bitcoin as a legitimate and mainstream asset class by regulators, policymakers, and influencers.

• The limited supply and increasing scarcity of Bitcoin, which creates a positive feedback loop of higher prices and lower volatility.

The report estimates that these factors will trigger a new Supercycle that will last for several years and push Bitcoin’s price above $500,000. This would imply a market capitalization of over $10 trillion for Bitcoin, surpassing that of gold. The report also suggests that Bitcoin could eventually become the global reserve currency of the digital age, replacing the US dollar as the dominant medium of exchange and store of value.

Bitcoin’s scarcity also makes it more attractive than other cryptocurrencies, which often have unlimited or variable supply models. While some altcoins may offer faster transactions, lower fees or more functionality, none of them can match Bitcoin’s proven security, network effect and immutability. Bitcoin is the original and most trusted cryptocurrency, and its scarcity is one of its key features that sets it apart from the rest.