India's Bitcoin Boom Sparks Malthusian Scarcity Concerns
India's rapid adoption of Bitcoin has sparked concerns about the limited supply of the cryptocurrency. With an estimated 66 million people, or 4.6% of the population, already owning BTC, experts warn that demand could outstrip supply as more Indians enter the market.
The Malthusian problem, named after Thomas Malthus' theory on population growth and resource scarcity, applies to Bitcoin's fixed supply of 21 million coins. As more people want to own BTC, competition for a share of the limited supply will intensify.
While each coin can be divided into 100 million satoshis, making it theoretically possible for billions of people to own a fraction of a coin, the challenge lies in how much of a share each person can claim as adoption grows. Indian Bitcoin holders should be aware that demand could push prices higher, but also increase competition for ownership.
The $5 million target for the price of BTC is ambitious and depends on various factors, including institutional interest, regulation, and global economic conditions.