BlackRock Warns Bitcoin Supply Is Too Limited to Meet Growing Demand

BlackRock, the world’s largest asset manager, has highlighted a significant imbalance between Bitcoin’s supply and the growing demand from U.S. millionaires.

In a newly released report, “Why Bitcoin? A Perspective from Model Portfolio Builders,” analysts Michael Gates and Brett Wager emphasize that Bitcoin’s supply is rigid and unresponsive to increased demand, setting it apart from assets like gold.

Unlike traditional commodities that can expand supply to meet demand, Bitcoin operates on a fixed issuance schedule with a hard cap of 21 million coins. The report notes that even this figure overestimates the actual circulating supply, as a significant portion of Bitcoin—estimated between 3 to 4 million—is permanently inaccessible due to lost private keys. The analysts illustrate this scarcity by stating that if every millionaire in the United States attempted to acquire just one Bitcoin, there wouldn’t be enough available supply to meet the demand.

BlackRock’s Model Portfolio Solutions team outlines several long-term investment cases for Bitcoin, describing it as a potential store of value, a hedge against U.S. dollar dominance and political instability, and a key player in the broader digital transition of global commerce. They argue that Bitcoin’s unique qualities could provide investors with an alternative source of risk exposure and diversification within multi-asset portfolios.

The report further underscores Bitcoin’s growing relevance in institutional investing, suggesting that its scarcity may play an increasingly vital role in shaping its long-term value. As regulatory frameworks evolve and institutional participation rises, BlackRock believes that Bitcoin could emerge as an essential asset class, benefiting from the ongoing shift in generational wealth from baby boomers to millennials, who show a stronger preference for digital assets.