Crypto Fud: Bitcoin Is Not Scarce

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Blockchain
Crypto Fud: Bitcoin Is Not Scarce

Crypto FUD is a frequently used word in the crypto markets. It is a short form of Fear, Uncertainty, and Doubt. Wikipedia describes FUD as a general strategy to influence perception by disseminating negative and dubious information and manifesting the appeal to fear. Currently, false information is spread from different sources, including media platforms and internet users. Luckily, some authentic crypto stakeholders are trying to educate people on cryptos to fight fud. One of the leading FUDS is Bitcoin is not scarce. Is this information reliable?

Claim

Previously, different people have said that Bitcoin is not scarce. The FUD is one of the most famous ones to date, and therefore it’s challenging to identify the primary source of the claim. The logic behind this claim is that although Bitcoin has a fixed supply of 21 million coins, it is not scarce since it is infinitely divisible.

Rating

False

Facts Check

Bitcoin actualizes the concept of digital scarcity by limiting itself to 21 million bitcoins via its code. The statistic shows that in the division of the 21 million, not even every millionaire would own a single bitcoin in the future. That essentially makes the coin one of the rarest assets available.

According to Blockchain.com, halving schedules predict that the remaining 10 percent supply would sustain until February 2140; hence, the remaining few bitcoins are unavailable for open market distribution. That leaves less than 20 million coins open for transactions during our lifetime.

The Truth About the Claim

The claim that Bitcoin is not scarce is one of the major fuds in the crypto space. It is based on loose grounds as the technical design of Bitcoin is angled at creating digital scarcity. The coin is designed to have a capped supply of 21 million coins. That means the coin’s supply cannot go beyond 21 million.

Currently, over 18 million coins have been mined, with the remaining coins set to be mined through to 2140. That means we will have less than 21 million people holding a full BTC during our lifetime. Such statistics show that the coin is already rare, yet only around 600 million people are said to be using cryptocurrencies at the moment.

The number of crypto users is expected to rise to post the regulatory phase. Since Bitcoin is the premiere crypto and the most valuable one, people are expected to bank more on it. The largest percentage of institutional investors will also be banking on it. Such a massive adoption of the currency would make its demand rise, leading to skyrocketing in its price.

This fact shows that the claim that Bitcoin is not scarce due to infinite divisibility is wrong and thus one of the greatest fuds in the crypto space. As a crypto enthusiast, you should check out reliable Bitcoin news sites to avoid being trapped by fuds and other unsubstantiated rumors and claims.

Samuel Mbaki Wanjiku

Samuel is an adventurous person who likes to explore topics in-depth and learn new things each day. His passion lies in gaining knowledge to help transform the world through his writing skills. He also believes in blockchain technology and its potential to usher in a cashless society. Currently, he is pursuing a Computer Science Bachelor’s degree driven by his fascination with emerging technologies. He has writing experience of about three years in different fields and two in blockchain technology.