title: The world's largest asset manager asserts that there isn't sufficient Bitcoin (BTC) to satisfy the demand from American millionaires.

In a recent report titled “Why Bitcoin? A Perspective from Model Portfolio Builders,” BlackRock analysts Michael Gates and Brett Wager highlight that Bitcoin's demand is inelastic

According to the world’s largest asset manager, there isn't enough Bitcoin (BTC) to meet demand from American millionaires alone.

In a recent report titled “Why Bitcoin? A Perspective from Model Portfolio Builders,” BlackRock (BLK) analysts Michael Gates and Brett Wager note that Bitcoin’s demand is inelastic, contrasting sharply with gold.

The analysts add that, unlike the yellow metal, BTC cannot handle excess demand with increased supply due to its hard-capped supply and predetermined inflation schedule.

“It is widely known that there is a predictable issuance schedule for new bitcoin until 2140, capped at a maximum supply of 21 million tokens. Less recognized is that the actual available float may be significantly smaller, with a conservative estimate suggesting that 3 to 4 million bitcoins are considered permanently inaccessible (and thus out of circulation) because they are lost, forgotten, or otherwise destroyed keys.”

“To put the scarcity of available bitcoins in perspective, if every millionaire in the U.S. requested their financial advisor to buy one bitcoin, there wouldn’t be enough to satisfy that demand.”

BlackRock’s Model Portfolio Solutions team sees several “substantial arguments that underpin Bitcoin’s long-term investment case.”

“Specifically, it may serve as a new store of value and global monetary asset, a hedge against U.S. dollar hegemony and political instability, and a proxy for the broader shift from ‘offline’ to ‘online’ goods and services—furthermore amplified by the demographic shift from boomers to millennials. Together, these characteristics might provide unique and additional sources of risk premiums and diversification for traditional multi-asset portfolios.”

At press time, Bitcoin is trading at $85,381.

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