Bitcoin hit $111k today. Why?
Because there isn’t enough Bitcoin if every millionaire wanted one.
What most people don’t get about Bitcoin is what most people don’t get about the power of two simple forces:
- Scarcity
- Supply & Demand
What’s the power of scarcity?
Have you ever watched an art auction?
I saw one where bidding started at $80M and ended at $400M!—just because two billionaires had to have the same painting. (link at the end)
Scarcity creates obsession. It triggers competition. It drives prices irrationally high.
Now layer in supply & demand…
It’s the invisible hand that sets the price of everything—from your morning coffee to the global oil market.
Bitcoin has a hard cap on supply: 21 million coins.
That’s it.
No central bank can print more. No government can dilute its value.
But here’s the kicker: demand for bitcoin isn’t staying flat.
Institutions, governments, ETFs, and everyday people are starting to wake up to what this asset actually is.
In 2020, we saw what happens when these forces collide.
The world was printing money. Demand for alternatives skyrocketed.
And Bitcoin?
It had just halved its new supply.
Result?
Price moved from ~$10,000 to over $60,000 in less than a year.
That was called a “supply shock”.
The next one? It’s already baked in.
This was one exercise in first-principle thinking for Bitcoin.
(Leonardo da Vinci’s ‘Salvator Mundi’ | 2017 World Auction Record: https://lnkd.in/dty4J9Z4)