Bitcoin’s Fixed Supply: A Seasoned Investor’s Playbook

My diary entries always begin with a confession. Today’s is simple: I’ve been wrong before. (Example: 2013, predicting the death of “that internet money.”) But here we are, staring at Bitcoin‘s (BTC) five-year performance-942%-and its 10-year return (47,330%) with the same gawping awe as a child watching a magician pull a rabbit from a hat. “How?!” you ask. Let me explain, while also admitting I once bought Bitcoin at $20,000, panicked at $30,000, and now regret it like a bad haircut.

Units of Cryptocurrency Lost: 12. Hours Spent Watching Charts: 9. Number of Panicked Texts to Friends: 24.
Moral of the story: This is not a hobby. It’s a high-stakes game of chess with the Fed as your opponent. And right now, I’m bullish. Here’s why.

Bitcoin Has a Fixed Supply-And That’s Not a Suggestion

Let’s talk scarcity, darling. Bitcoin’s 21 million supply cap isn’t written in wet ink-it’s etched in code, like a digital version of the Great Pyramid. There are currently 19.9 million in circulation, and the remaining 1.1 million will be mined out over the next decade (or until the next halving, which I’m 98% sure will happen). This isn’t a soft ceiling; it’s a hard stop, like a speed limit that’s also a brick wall. Unless 51% of the network’s nodes decide to rewrite the rules (unlikely, given their current priorities: probably not “let’s flood the market”), Bitcoin’s supply is final.
In contrast, fiat currencies? They’re more like… well, confetti. Just ask the U.S. government, which has inflated the money supply to $37 trillion since the Great Recession. “But wait!” you say. “That’s just debt!” Yes, but it’s debt with a side of stimulus checks and helicopter money. More dollars chasing fewer Bitcoins? That’s not inflation-it’s a mathematical inevitability.

Loading widget...

Debasement 101: Why Scarcity Matters

Let’s play a game. Imagine you own a rare painting. Now imagine the world prints 10,000 copies of it. What happens to your original’s value? Precisely. Bitcoin is the Mona Lisa of assets, and central banks are the art forgers. Every time they hit “print” on a trillion-dollar note, they’re not just debasing the dollar-they’re inflating Bitcoin’s value by inverse proportion.
The numbers don’t lie. Since 2008, the U.S. money supply has grown by 300%. Meanwhile, Bitcoin’s supply will shrink by 0% (unless someone invents a time machine to mine pre-2009 coins). This isn’t a bet on volatility; it’s a bet on arithmetic. And arithmetic, my dear reader, doesn’t care about your portfolio stress dreams.

So here’s my takeaway: Buy Bitcoin not because it’s a hot stock, but because it’s the closest thing we have to a digital gold standard. And if you’re still nervous? I get it. I once sold half my stake during a dip, only to watch it double the next week. But let’s call it what it is: FOMO with a PhD in regret. 🚀

Read More

2025-08-17 20:04