India's Bitcoin Boom Threatens Scarcity as Demand Outpaces Supply

India's growing interest in Bitcoin has sparked an interesting debate about scarcity and demand. According to estimates, over 66 million people own some form of cryptocurrency, which is roughly 4.6% of the country's population. This number surpasses many other countries, including the US, China, Indonesia, and Brazil.

The concept of scarcity in Bitcoin is not new, but India's large population has made it a unique test case for the adoption thesis. Thomas Malthus' theory on population growth and resource availability comes to mind here. He argued that population can grow faster than available resources, leading to scarcity and pressure on limited supplies.

In this context, Bitcoin's fixed supply of 21 million coins becomes more relevant. As demand grows, the value of each coin increases, making it harder for new investors to own a significant portion of the crypto. However, Bitcoin can be divided into smaller units called satoshis, which allows more people to participate in the market.

The challenge lies in how much each person can own as adoption continues to grow. With billions of potential owners and a limited supply, competition for ownership will increase, making it harder to acquire a larger share of the crypto.