- Over the past 12 months or so, finance guru Warren Buffet has continually spoken out against Bitcoin since he believes the asset to be “intrinsic worthless.”
- Peter Schiff, CEO of Euro Pacific Capital, was recently quoted as saying that Bitcoin “is not facing a scarcity problem” since there already exist a number of other crypto assets in the market that possess “better operational properties and characteristics”.
- One of the most intriguing things about Bitcoin is that the digital currency has a fixed total supply — i.e. in all, there can only ever exist a total of 21 million BTC.
Out of this figure, 17,763,712 tokens are currently in circulation and this has raised a lot of eyebrows within the mainstream media at large, who go on harping that this inherent scarcity will one day lead to the downfall of the flagship crypto asset.
So, for the naysayers, we need to point out that the last ever BTC will be mined almost 100 years from this very date (7th May 2140 to be exact). This fact in itself, shows that there is no real reason to propagate any unwarranted panic amongst investors about the long-term utility/ viability of Bitcoin.
- Many detractors claim that Bitcoin’s fixed token volume makes the virtual asset “deflationary” by nature.
- A number of experts including eToro’s Mati Greenspan believe that Facebook’s upcoming “Libra” coin will help increase BTCs popularity rather than eat into its existing market share.
- A recent research study released by Forbes has indicated that Bitcoin’s scarcity might actually work in its favour since a lot of people will turn towards the premier virtual currency after FBs upcoming stablecoin offering exposes the masses to this burgeoning asset class.
- According to the SF2 (Stock to Flow ratio) metric standard — a concept which explains the scarcity value of a particular commodity — Gold currently had the highest S2F value of any asset in the market today followed closely by Bitcoin.
The scarcity argument has largely been rejected/ debunked by a large number of educated crypto enthusiasts who understand the true potential of this burgeoning asset class and what it really represents — i.e. increased financial transparency and lesser dependence on centralized financial institutions.