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 has cast doubt on Bitcoin’s fixed supply of 21 million tokens, stating,
“There is no guarantee Bitcoin’s 21 million supply cap will not be changed.”
This has many in the community concerned about the growing influence of corporate giants like BlackRock.
Bitcoin’s Supply Cap Controversy
Bitcoin’s 21 million supply cap is a core principle of the 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 ever exist, Bitcoin avoids inflationary pressures. It is a key part of Bitcoin’s appeal as “hard money,” something that is resistant to government manipulation.
BlackRock’s ad briefly acknowledges Bitcoin’s supply limit but introduces doubt.
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This comment has caused an uproar among Bitcoin’s most passionate supporters. They argue that altering the supply would undermine Bitcoin’s fundamental value.
Bitcoin advocates see the fixed supply as essential to the decentralized nature of the cryptocurrency. The idea of changing the supply limit is seen as an attack on Bitcoin’s core principles.
Anatoly Yakovenko, co-founder of Solana, expressed his concerns on X, calling out BlackRock and Bitcoin investors like Michael Saylor.
Yakovenko argued that traditional finance views Bitcoin as a tool for investment, not a decentralized system.
He challenged both BlackRock and Saylor to commit to running their own full nodes, ensuring they follow only the Bitcoin network that supports the 21 million cap.
Sebastian, a Bitcoin developer, also criticized the video. He lamented the lack of response from Bitcoin’s core developers to BlackRock’s statement.
Suggesting that Bitcoin is drifting away from its original cypherpunk ideals, he said,
“BTC is no longer Bitcoin, it’s now a number-go-up NFT,”
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 need majority consensus from miners and node operators.
While most in the crypto community doubt this would ever happen, the possibility remains. Bitcoin developer Peter Todd pointed out that if the community agrees, the supply cap could technically be altered.
However, such a change would go against the financial incentives that drive Bitcoin’s network.
Bitcoin’s value relies on its fixed supply, and most participants have a strong interest in preserving that.
Despite this, the mere suggestion that the supply cap could be changed has caused alarm.
Some argue that BlackRock’s disclaimer was a simple legal precaution. Adam Back, CEO of Blockstream, suggested that the wording 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 raised eyebrows in the Bitcoin community.
BlackRock’s Bitcoin ad has sparked a debate about corporate influence over Bitcoin’s core principles.
The brief disclaimer questioning the fixed supply of Bitcoin has led to concerns that powerful corporations could alter Bitcoin’s protocol.
