Bitcoin Developer Clears Air on BlackRock 21 Million BTC Supply Controversy

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As a seasoned researcher and long-time observer of the cryptocurrency market, I find myself both intrigued and amused by the recent events surrounding Bitcoin. The controversy over BlackRock’s statement about the potential flexibility of Bitcoin’s 21 million supply cap is a fascinating study in corporate-community dynamics.

Bitcoin developer Adam Black has publicly clarified a misunderstanding concerning a recent video by investment manager BlackRock. The video suggested that the 21 million supply limit of Bitcoin isn’t set in stone, and Adam Black confirmed this assertion, explaining that while the total amount of Bitcoin is capped at 21 million, it’s important to note that changes to this cap are theoretically possible, although highly unlikely. The current supply stands at approximately $92,889 per BTC, with a daily volatility of 9.1%, a market capitalization of $1.85 trillion, and a 24-hour trading volume of $117.76 billion.

It’s widely recognized that one key advantage of Bitcoin is its limited supply of 21 million coins, making it an attractive store of value. However, expanding this number might cause the asset to lose value. Recently, a user on the platform expressed concern over the lack of response from Bitcoin developers regarding this issue. Sebastian, the user in question, emphasized that the decentralized nature and core principles of Bitcoin should be vigorously defended, not overshadowed by corporate interests.

Notable Bitcoin developer Adam Back voiced concerns over a disclaimer in a promotional video by BlackRock, with the focus being on the clause stating that the cap’s stability was not guaranteed. This aspect caught the attention of investors, as MicroStrategy chairman Michael Saylor shared the same video on his Twitter account.

The Bitcoin programmer implied that the disclaimer was probably a cautionary step taken by BlackRock’s legal department, since they deal with investment products and do not manage the associated risks.

He also pointed out that BlackRock’s disclaimer simply acknowledges that the company has no control over Bitcoin’s decentralized system, as any attempt to influence its protocol would be futile due to the lack of authority they have over the Bitcoin community. In other words, it’s just a legal disclaimer stating that BlackRock can’t guarantee changes to Bitcoin because if the community tried to make such changes, there wouldn’t be anything BlackRock could do about it. He also emphasized that significant alterations to Bitcoin’s system are highly unlikely due to its strong consensus among the community.

Bitcoin Exchange Supply on a Decline

After Donald Trump’s win in early November 2024, the price of Bitcoin experienced a significant increase, reaching a record peak of $108K just recently. This impressive rise in Bitcoin price is accompanied by robust activity on the blockchain network and a decrease in Bitcoin held on exchanges.

Bitcoin Market Analyst Ali Martinez has pointed out an interesting pattern in Bitcoin (BTC) transactions this past month. Specifically, Martinez mentioned that a large amount of 74,052 BTC were withdrawn from exchanges during December, suggesting a rise in off-exchange Bitcoin storage. “It appears this trend is not abating,” Martinez added.

Source: Ali Charts

Despite reaching a new peak earlier this week, Bitcoin is currently experiencing substantial selling activity that has caused it to drop by over 10% from the highest point. As we speak, the BTC price stands at $94,882, representing a 7.5% decrease, and its market capitalization hovers around $1.878 trillion.

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2024-12-20 14:42