1 in 21,000,000: The Value of Bitcoin Scarcity

When all the Bitcoin are eventually mined, there will be 21,000,000 of them in existence. Yes, that's twenty-one million only. And that's all there will ever be. In a world of over seven and a half billion people, that is some serious built-in scarcity.

It's easy to see that if demand for Bitcoin, and access to it, continues to increase across the globe, then matching growth in the price will follow. If this scenario eventuates, then holders of even one Bitcoin will find themselves in a very select group and in a very privileged position.

While the outcome is by no means certain, these are exciting times that we live in. If the outcome was known, and positive, then the rush for Bitcoin would be unimaginable. Just as the rush to register common one-word generic domain names would have been at the start of the internet, if it was known what internet's future would be.

It was the uncertainty of the outcome that created the opportunity for those investing in domain names during the infancy of the web. There was risk involved and ridicule from those who thought that early investors were wasting their time and money. It turned out that they were acquiring scarce, sought after and highly valuable assets.