BlackRock, the world’s largest asset manager, released a three-minute video promoting Bitcoin. The video highlighted Bitcoin’s fixed supply of 21 million coins.
However, it included a disclaimer that cast doubt on Bitcoin’s fixed supply of 21 million tokens, stating:
“There is no guarantee that the 21 million Bitcoin supply cap will not be changed.”
Many community members are concerned about the growing influence of private sector giants like BlackRock.
Bitcoin Supply Cap Controversy
The 21 million Bitcoin supply cap is a fundamental principle of cryptocurrency. This fixed supply ensures that Bitcoin is scarce, mimicking precious metals like gold. Scarcity is what gives Bitcoin value.
By limiting the total number of coins that can exist, Bitcoin avoids inflationary pressures. This is a key part of Bitcoin’s appeal as “hard money,” something that resists government manipulation.
BlackRock’s ad briefly acknowledges Bitcoin’s supply limit but introduces doubt.
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This comment caused an uproar among Bitcoin’s most passionate supporters. They argue that changing the supply would harm the fundamental value of Bitcoin.
Bitcoin proponents view fixed supply as essential to the decentralized nature of the cryptocurrency. The idea of changing the supply limit is seen as an attack on the fundamentals of Bitcoin.
Anatoly Yakovenko, co-founder of Solana, expressed concerns about X, calling BlackRock and Bitcoin investors as Michael Saylor.
Yakovenko argued that traditional finance views Bitcoin as an investment tool and not a decentralized system.
He challenged BlackRock and Saylor to commit to running their own full nodes, ensuring they only track the Bitcoin network that supports the 21 million cap.
Sebastian, a Bitcoin developer, also criticized the video. He lamented the lack of response from major Bitcoin developers to BlackRock’s statement.
Suggesting that Bitcoin is moving away from its original cypherpunk ideals, he said:
“BTC is no longer Bitcoin, it’s now an NFT on the rise.”
The impact of a hard fork
Changing Bitcoin’s supply cap would require a hard fork – a radical change to the Bitcoin protocol. This would require majority consensus from miners and node operators.
Although most in the crypto community doubt this will ever happen, the possibility remains. Bitcoin developer Peter Todd pointed out that if the community agrees, the supply cap could technically be changed.
However, such a change would go against the financial incentives that drive the Bitcoin network.
The value of Bitcoin depends on its fixed supply, and most participants have a vested interest in preserving it.
Despite this, the mere suggestion that the supply cap could be changed has sparked concern.
Some argue that BlackRock’s disclaimer was simply a legal precaution. Adam Back, CEO of Blockstream, suggested that the language was likely required by BlackRock’s legal team.
As an institutional investor, BlackRock sells financial products and must take steps to protect itself legally. However, the wording still raises eyebrows in the Bitcoin community.
BlackRock’s Bitcoin ad sparked a debate over corporate influence over Bitcoin’s fundamentals.
The brief warning questioning Bitcoin’s fixed supply has sparked fears that powerful companies could change Bitcoin’s protocol.