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- India’s Bitcoin ownership is estimated at 4.6%, representing over 66 million people.
- The supply is capped at 21M coins, while the number of potential owners can keep growing.
- Rising adoption could make owning a larger share of BTC increasingly difficult as demand grows.
Bitcoin has a limited supply, with the total number of available coins capped at 21 million. But this takes an interesting turn as there is no limit to the number of people who could want to own the crypto. This creates a unique scarcity problem, especially in countries like India, where 4.6% of the population already owns crypto.
Malthus’ Scarcity Theory Meets Bitcoin’s Fixed Supply
Crypto analyst Willy Woo took to X to reveal India’s growing adoption of cryptocurrencies. Reportedly, in India, more than 66 million people own crypto, representing 4.6% of the total population. The country ranks first in terms of crypto adoption, outperforming global leaders like the US, China, Indonesia, and Brazil.
Here, the population theory of Thomas Malthus comes into focus. In his 1798 work, An Essay on the Principle of Population, Malthus shared a simple idea. He explained that population can grow faster than the regreater pressure on limited re
Bitcoin creates a somewhat similar situation, but not with population. The number of people wanting to buy BTC may continue to increase. But the supply remains limited at 21 million.
India’s 4.6% Ownership Estimate Changes the Scarcity Debate
Significantly, India makes the Bitcoin scarcity debate more interesting, mainly because of its large population. As per estimates, about 66 million already own BTC. But this accounts for only a small portion of 4.6% of the total population. If adoption continues to surge, the ownership could increase to hundreds of millions. This makes Thomas Malthus’ theory more relevant as the number of people who want to own crypto continues to grow, while the supply stays limited.
21M Bitcoin vs. Billions of Potential Owners
The story of Bitcoin is becoming more interesting when comparing its limited supply and the number of people wanting to own it. There are billions of people across the world who could potentially buy and store it. But even if the demand surges, the Bitcoin supply will remain the same.
However, this doesn’t mean that there will be a shortage of BTC itself. This is mainly because each Bitcoin could be divided into 100 million satoshis, providing more people with access to the crypto. This makes it clear that Bitcoin cannot really “run out.” Even if millions of people come into the market, they can own even a fraction of the crypto
But the issue is how much BTC each person can own as adoption grows. In the future, when more people enter the market, they may have to struggle for a share of the same mixed supply.
Why India Is an Important Test Case for the Adoption Thesis
While discussing the connection between the BTC supply and population, India is the best country to consider. This is due to its 1.47 billion population and the growing adoption of crypto. In such a market, even a small increase in the percentage of people owning crypto could add millions of new users to the global market.
The Malthusian Limit Bitcoin Actually Faces
Notably, Bitcoin’s real scarcity issue is not that the investors cannot potentially own any BTC. This issue cannot arise as each coin can be divided into 100 million satoshis. This makes it clear that even if adoption grows, new investors can hold at least a share of the coin.
The challenge is the fixed supply and growing demand. There will be increasing competition between investors to own a share of the limited number of coins. This is where the Malthus theory could be applied. Even though BTC does not face the same retion
Does More Ownership Make $5 Million Bitcoin More Plausible?
When demand grows, it can push the Bitcoin price significantly higher. But the ambitious $5 million target is not that easy in the near future. Nonetheless, if adoption grows dramatically, it could result in a new all-time high. At the same time, the $5 million milestone will depend on additional factors like institutional interest, regulation, the global economy, and the larger role of BTC in global finance.
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What This Means for Indian Bitcoin Holders
Indian Bitcoin holders should understand the importance of the fixed supply of Bitcoin. If more Indians buy BTC, the demand could further increase while the supply remains stable. But this doesn’t mean that every Indian needs to own a whole BTC. As the crypto is available in satoshis, they can make sat investments with much smaller amounts.
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Source: coinedition.com