India's Bitcoin Frenzy Tests Malthusian Scarcity Limits

India's rapid adoption of cryptocurrencies has caught attention from crypto analysts and enthusiasts. According to data, over 66 million people in India own Bitcoin, which represents about 4.6% of the country's population. This makes India the leader in cryptocurrency adoption, surpassing countries like the US, China, Indonesia, and Brazil.

Bitcoin's supply is capped at 21 million coins, but its growing demand has sparked a unique scarcity problem. Thomas Malthus' theory on population growth comes into play here, as he explained that population can grow faster than resources available to meet their needs. Similarly, the number of people wanting to buy Bitcoin may continue to increase, while the supply remains limited.

India's large population makes it an interesting case study for this problem. Even if adoption continues to surge, only a small portion of the population currently owns Bitcoin. This means that billions of potential owners are still waiting in the wings, which could push demand even higher and drive up prices.