Bitcoin Could be More Scarce (and Thus More Valuable) Than Originally Believed

Bitcoin (BTC) is, without a doubt, one of the most revolutionary financial instruments in existence today. One key feature that gives BTC its significant evaluability is its digital, hard-coded scarcity. Considering that there will only ever be 21 million BTCs, it is arguably the hardest form of money on earth.

However, according to cryptocurrency expert, Willy Woo, the real supply of Bitcoin is just about 17 million. This claim, if true, makes the benchmark cryptocurrency rarer and thus, more valuable.

Meanwhile, with the growing uncertainty plaguing the financial markets and the dollar on the verge of collapse, investors are now trooping in droves to safe-haven assets like gold (XAU/USD) and Bitcoin. Both assets have performed far better than the equities markets this year. Furthermore, Bitcoin has performed three times better than gold. This record should give you a better understanding of how valuable the cryptocurrency is currently perceived.

Woo’s notion that Bitcoin is short by more than 4 million BTC comes from the possibility that many of the cryptocurrency was poorly handled in the past and have been lost—permanently.

In the early days of Bitcoin, holders most probably were oblivious to the potential value of the cryptocurrency. That said, it is likely that millions of BTC were lost due to forgotten private keys, wrong address transfer, or death.

Key BTC Levels to Monitor in the Near-Term — October 29

Bitcoin has once again been rejected from the $13,000 level after a steep decline today. At press time, the cryptocurrency is trading at $13,570, as it struggles to maintain a footing above $13,600. This could be a sign that the bullish momentum is starting to wane.

That said, we could expect a retest of the $13,000 psychological line once again in the near-term. A break below that level could bring the $12,500 support into play again.

Total market capital: $396 billion

Bitcoin market capital: $249 billion

Bitcoin dominance: 62.8%

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