Saylor’s Bitcoin Strategy Could Trigger a Supply Crunch: Expert

Michael Saylor’s Bitcoin acquisition is being described as a “synthetic halving” by Adam Livingston, a Bitcoin analyst and author of The Bitcoin Age and The Great Harvest . According to Livingston, Saylor’s firm, Strategy, is buying half or more of the newly minted Bitcoin from miners each month, effectively tightening the available supply at an unprecedented rate. Currently, Bitcoin miners produce around 450 BTC per day, amounting to roughly 13,500 BTC per month. However, in the last six months alone, Strategy has accumulated approximately 379,800 BTC . This figure translates to about 2,087 BTC purchased daily—far surpassing the amount miners bring to the market each day. Livingston warns that as Bitcoin becomes scarcer, accessing it will require paying a premium. Lending against Bitcoin will become more expensive, and borrowing Bitcoin may eventually be a privilege reserved for nation-states and corporate giants. “BTC’s global cost of capital will no longer be set by ‘the market.’ It will be set by the gravitational policies of the first Bitcoin superpower: Strategy,” Livingston stated. Higher Prices and Growing Institutional Demand Livingston’s analysis suggests that Strategy’s aggressive buying could cause a severe Bitcoin supply crunch, leading to much higher prices if institutional and retail demand continues to rise. Supporting this view, Cypherpunk and Blockstream CEO Adam Back recently predicted that Strategy, along with other firms adopting Bitcoin corporate treasury strategies, could help drive Bitcoin’s total market capitalization to an astounding $200 trillion. Back described these firms as capitalizing on the gap between Bitcoin’s future value and today’s fiat economy, suggesting that their continued accumulation will have a major impact on Bitcoin’s price trajectory. As Bitcoin remains supply-capped, the aggressive strategies of these institutions could redefine the dynamics of the market in the coming years. Debate Around Risk and Centralization Despite the optimism, Strategy’s debt-fueled Bitcoin acquisition plan has drawn criticism. Skeptics warn that if Bitcoin enters a prolonged bear market, the company could face severe financial consequences, potentially introducing new systemic risks for the broader Bitcoin ecosystem. Moreover, concerns about centralization are rising, given the sheer volume of Bitcoin now controlled by a single entity. However, Bitcoin advocate and author Saifedean Ammous has dismissed fears that the firm could manipulate the Bitcoin protocol. Ammous argued that major holders like BlackRock and Strategy would never support changes like increasing Bitcoin’s maximum supply, as it would severely harm their own financial interests—and their shareholders would likely push back against any such moves. The post Saylor’s Bitcoin Strategy Could Trigger a Supply Crunch: Expert appeared first on TheCoinrise.com .

Source: The Coin Rise