The Inevitability of Bitcoins $1 Million Future: Scarcity, Rising Demand, and Institutional Adoption

In the current financial landscape, where many actors are seeking a path to wealth amidst a dwindling pool of hard assets, Bitcoin has emerged as a unique and promising investment opportunity. With its fixed supply and growing demand, the cryptocurrency has the potential to reach a price of $1 million per coin in the future. In this article, we will explore why this prediction is not just a fringe fantasy but an inevitability, and why investors should focus on the inherent value of Bitcoin rather than its current price.

1. Bitcoin is supported by many favorable and long-term tailwinds, some of which are getting even stronger right now.
2. The coin's price is just a number, and investors should focus on why it has value.
3. Scarcity is more than a meme; there will only ever be 21 million Bitcoin, and roughly 94% of them already exist.
4. Fresh supply keeps shrinking, and it will only continue to do so, unlike fiat currency.
5. Institutional credibility matters as global debt hits a record $313 trillion, making non-sovereign assets more appealing.
6. Roughly 60 non-crypto companies have adopted a Bitcoin treasury strategy, earmarking about $11.3 billion for buying and holding coins since April.
7. If the digital gold thesis catches on at the sovereign level, the path to $1 million could compress from decades to years.

Scarcity as a Driver of Value: Scarcity is a key driver of Bitcoin's value. There will only ever be 21 million Bitcoin, and roughly 94% of them already exist. The pool is even smaller once you subtract an estimated 3.7 million coins that are lost forever due to misplaced keys or provably unspendable coins that have been intentionally burned by owners. With perhaps 17 million to 18 million coins actually accessible of the total supply, hitting $1 million implies a $17 trillion market cap, which is about the size of today's existing gold stock. The precedent of an asset reaching that size is thus already well established.

Growing Demand: The demand for Bitcoin is growing rapidly, driven by institutional credibility and the need for non-sovereign assets in a world where fiat currencies are printed to pay interest on rising debt. When the U.S. Securities and Exchange Commission approved the first spot Bitcoin ETFs in January 2024, it opened the gate for every retirement planner and pension fund to invest in the coin with a few clicks. Roughly 60 non-crypto companies have adopted a Bitcoin treasury strategy, earmarking about $11.3 billion for buying and holding coins since April. If the digital gold thesis catches on at the sovereign level, the path to $1 million could compress from decades to years.