Bitcoin's supply, as you probably know, isn't infinite. The world's oldest and largest cryptocurrency is capped at 21 million coins, with over 93% already mined. The remaining bitcoins will gradually enter circulation until 2140.
With minimal new supply entering the market, acquiring bitcoin typically means buying it from existing holders.
👉 Discover how institutions are accumulating bitcoin
Bitcoin Ownership Breakdown
A recent analysis by River Financial reveals key ownership trends:
1. Satoshi Nakamoto (5.2%)
- The pseudonymous creator holds ~1.1M BTC ($78B as of March 2024).
- These coins remain untouched since Bitcoin’s early days.
2. Individual Investors (57%)
- Dominated by "whales": 40% of bitcoin is held in wallets with 1,000+ BTC.
- Only 8% is in wallets with <1 BTC.
- 70% of bitcoin hasn’t moved in over a year, indicating long-term holding.
3. Lost Coins (17.6%)
- Irretrievable due to lost keys, hardware failures, or accidental disposal.
- This permanently reduces circulating supply.
4. Institutional Players (3.9%)
- Includes ETFs, hedge funds, and investment firms.
- Growing demand from this group could intensify scarcity.
5. Businesses (3.6%)
- Public companies like MicroStrategy, Tesla, and Marathon Digital hold significant reserves.
6. Governments (2.69%)
- Primarily seized assets from criminal cases.
Key Takeaways
- Illiquid Supply: ~70% of bitcoin is held long-term or lost.
- Whale Influence: Large holders can significantly impact market dynamics.
- Scarcity Accelerator: Lost coins and institutional demand may deepen supply shortages.
👉 Explore bitcoin investment strategies
FAQs
Q: How much bitcoin is left to mine?
A: ~1.47M BTC (7% of total supply) remains to be mined by 2140.
Q: Can lost bitcoin be recovered?
A: Almost never—unless private keys are miraculously rediscovered.
Q: Why do institutions want bitcoin?
A: As a hedge against inflation and a scarce digital asset with growing adoption.
Q: Could governments confiscate more bitcoin?
A: Possible, but unlikely to drastically alter ownership distribution.
Q: Is bitcoin’s value guaranteed to rise?
A: No. Volatility remains high, but scarcity mechanics favor long-term holders.
Bitcoin’s unique supply constraints and ownership landscape create a compelling—if unpredictable—investment case. Its future will hinge on adoption, regulation, and market sentiment.