$BTC Bitcoin's Supply Asymmetry Under Institutional Review
Ark Invest highlights a core structural difference between Bitcoin and traditional stores of value: supply response to demand. Gold's production scales with price incentives—higher prices trigger increased mining activity. Bitcoin operates under a fixed issuance schedule, unaffected by market demand.
This creates a mathematically enforced scarcity curve. As demand rises, Bitcoin cannot increase supply. The halving mechanism further tightens this dynamic every four years. Institutions are now positioning around this inelastic supply model, viewing it as a hedge against fiat dilution and monetary expansion.
The question becomes: how do markets price absolute scarcity versus relative scarcity?
What's your take on supply caps as a valuation framework?
#bitcoin #CryptoFundamentals #InstitutionalCrypto #BTCanalysis #SupplyDynamics