The 21M Bitcoin Limit: Fact or Myth? BlackRock questioned ! đ€Ż
On December 17, 2024, BlackRock, the worldâs largest fund manager, cast doubt on Bitcoin's 21 million supply cap, claiming it isn't guaranteed to remain fixed.
This raised concerns in the crypto community about Bitcoin's scarcity, value, and network security.
Technically, altering the supply cap would require a hard fork and widespread consensus.
However, experts argue this would fundamentally change Bitcoin's nature.
Super Testnet, creator of BitVM, emphasized, âWithout the supply limit, itâs no longer Bitcoin.â
The 21 million limit ensures Bitcoin's scarcity and underpins its value.
Critics warn a change could undermine miner incentives, threaten network security, and shake investor confidence, particularly as block rewards halve further in 2028.
Reactions were divided. Some dismissed the likelihood of a change, while others suggested BlackRock's statements reflected a deeper understanding of Bitcoin.
Market volatility surged, with parallels drawn to the 2016-2017 Blocksize Wars, when the Bitcoin community resisted similar significant changes.
While Bitcoinâs decentralized governance safeguards it from external pressures, BlackRockâs influence highlights growing institutional sway, raising questions about decentralization's future.
Always remember Bitcoinâs volatility is a feature not a Bug !
Don't feed whales â ïž
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LITZ Analysis
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Bearish
This manipulation is huge, $BTC will drop way more than this. Donât get liquidated. Bitcoin broke the 98K resistance, which means we will see Bitcoin going for the liquidity at 95K. If it drops below this, then Bitcoin will go all the way to 88K. Best time to short the market is now đđ
Michael Saylorâs Infinite Bitcoin Playbook: Genius or Gamble?đ€Ż
"Debt is a tool, and no one wields it quite like Michael Saylor."â Mr. WW.
Michael Saylor and MicroStrategy have leveraged corporate finance to become major players in Bitcoin.
By issuing over $6 billion in convertible bonds (with $18 billion more planned), theyâve positioned themselves as Bitcoinâs top whale.
Hereâs how they do it and the risks involved đš
Convertible Notes: The Magic Wand of Bitcoin Bullsđ
Convertible notes offer cash without dilution or collateral. Investors profit, and MicroStrategy uses them to buy Bitcoin at scale, borrowing at just 0.811% annuallyâpractically free money.
The twist? These notes come with 0% interest and exploit the volatility of MicroStrategy's stock, making it a Bitcoin play without directly owning BTC.
How They Pull It Off đ MicroStrategy has secured 439,000 BTC worth $46 billion, making it the biggest Bitcoin holder.
Investors are drawn to these bonds for their stability, while Saylor uses minimal-cost debt to increase Bitcoin holdings.
The volatility in MSTR stock gives traders an arbitrage opportunity, making Wall Street a crypto-like gambling hub.
The Risks No One Talks About đ€ The main risk: if Bitcoin prices dip for too long, companies might be forced to sell assets or liquidate.
MicroStrategy, however, is cushioned by staggered bond maturities and an average BTC purchase price of $61,725.
Newer companies like MARA, Bitdeer, and Riot face greater risks with potential higher buy-in prices.
So, Whatâs the Verdict?
Saylorâs strategy is either brilliant or a high-risk gamble. Bitcoin maximalists view it as a sign that institutions are betting big on crypto.
However, if leveraged firms are forced to sell, it could cause market instability.
Mr. WWâs Take "Saylor's strategy is bold, relying on Bitcoin's long-term value. If youâre watching, turn these risks into lessons."
Binanceâs $3.5 Billion Mistake: What Really Happened with PENGU?
Big news, crypto famâBinance just fumbled big time with the Puddy Penguins ($PENGU) listing, and itâs got everyone talking.
Hereâs the deal: for the first 30 minutes after PENGU went live, Binance showed its market cap as $350 million instead of the actual $3.5 billion.
Thatâs not a minor slipâitâs a billion-dollar blunder that led to wild trading chaos.
Turns out, the issue was caused by a delay in updating token info from CoinMarketCap (CMC), Binanceâs main data provider.
The good news? Binance jumped on the problem quickly, worked with CMC to fix it, and then owned up to the mess with a public apology.
But they didnât stop thereâtraders who got caught in the madness during the 14:00 to 14:37 trading window on December 17 will be compensated with a whopping 135 million PENGU tokens in airdrops.
Binance has also promised to step up their game, with plans to explore alternative data sources and tighten reviews with CMC.
Itâs a costly lesson for the exchange, and a reminder for traders to always stay sharp, even on the biggest platforms.
Powell Drops a Bombshell on Bitcoin & Markets! đ„
Hello, WealthWave family! Mr. WealthWave here to break down Jerome Powellâs latest market-shaking comments for you:
1ïžâŁ No BTC in Reserve: The Fed has officially shut down any notion of adopting Bitcoin as a reserve asset. Tough luck for the crypto dreamers!
2ïžâŁ Rate Cuts on Hold: Powell dampened hopes for aggressive monetary easing, announcing only two rate cuts in 2025âfar fewer than expected.
3ïžâŁ Inflation Battle Continues: The 2% inflation target remains elusive. Powell warned it could take two more years to achieveâand we could even see inflation creep up again in 2025.
đ Impact on the Market:
Bitcoin felt the pressure immediately, plunging below key support levels.
The broader markets, including the S&P 500, took a hit as traditional assets faced added volatility.
With the crypto crowd hoping for faster rate cuts, many investors chose to lock in profits instead of holding positions.