BTC Scarcity Is Real- With 1.2 Million Tokens Out Of Circulation


One of the most distinguishing factors that differentiate BTC from other forms of fiat currencies and other cryptocurrencies is the exhaustible limit of 21 million of the total circulating supply.

However, the collapse of several crypto exchanges over the last decade has taken out close to 5.7% of the total issue Bitcoin from circulation. The primary reason behind the collapse of the cryptocurrency exchanges would be a lack of clarity around the proof of reserves of a crypto exchange. According to data that was received from several analytics platforms, most crypto crashes highlighted that close to 14 crypto exchanges, were entirely responsible for the loss of 1.195 Million Bitcoin tokens, which represent around 6.3% of the total 19.2 Bitcoin that is currently in circulation. 

BTC Tokens Might Soon Exhaust

An investigation that was conducted in this case by Jameson Lopp, the co-founder, as well as the chief technology officer of CasaHODL, a BTC storage platform, went on to reveal that Mt. Gox still remains at the top of the crypto exchanges that have been losing out to BTC holdings.

Although the scarcity of BTC is mostly related to the asset value that it represents, Lopp also pointed out that most of the fake offerings of Bitcoin would be currently threatening the ecosystem, adding that Bitcoin will not be a great store of value if most individuals were buying fake cryptocurrencies. Investigations went on to conclude that around 80 crypto assets have Bitcoin attached to their name- and they have been aimed to mislead the investors of BTC. 

Public records have shown that El Salvador is currently on top with 2,381 BTC tokens at a buying price of $43,357. However, the stagnant performance of Bitcoin did open up a major door for the country to bring the average price of Bitcoin acquisition down.