Dennis Gartman, a much lesser known Bitcoin critic believes that Bitcoin’s limited supply doesn’t make a good case for the cryptocurrency. Despite the recent rise of the cryptocurrency in investment circles and skyrocketing bull run, some conventional old-school investors still remain skeptical of the digital currency’s long-term future.
Bitcoin is designed to have a maximum supply of around 21 million tokens. Currently, the total number of Bitcoin in circulation are around 18.57 million with around 6.25 Bitcoin being added into the system in every 10-15 minutes or so. In addition to this systematic addition of Bitcoin, every four years or so, Bitcoin’s supply is further halved. As a result, the asset is expected to become scarcer over time. This is normally seen as a big positive point of the cryptocurrency. Initially, only the cryptocurrency enthusiasts outlined this important detail but recently, conventional investors are also jumping on the bandwagon. So, the limited nature of the cryptocurrency’s volume is very crucial to its increasing value.
But, some investors are still being stubborn about the future of the sector. Dennis Gartman is one of those people. He is a renowned Gold buff and rejected Bitcoin’s comparison with Gold in a recent commentary. He did this in his analysis of markets activity of the last 30 years. He said:
“Gold has been around for thousands of years, Bitcoin has been around for 20 years….., I fear that once, in the not-too-distant future, the monetary authorities, the various central banks around the world, are going to refuse to give up their monopoly on monetary policy and will walk in one day and Bitcoin has been rendered zero”
Setting aside the fact that Bitcoin hasn’t been around for 20 years (It has been around 12 years,), Gartman seems too stubborn to understand the impact of Bitcoin and its place in the future. He was also skeptical of the limited existence of the top cryptocurrency by saying there are more than 7000 cryptocurrencies and thus there are infinite amounts of these finite cryptocurrencies to buy. Now that would have made sense if Bitcoin and a few other top coins weren’t so dominant. The top 10 cryptocurrencies have over 92% of the market share. This shows that despite new coins entering the market every now and then, almost all of them fail because the market rejects their copy cat approach. Take Bitcoin’s own fork Bitcoin Cash and then Bitcoin Gold. While Cash had some market presence, it has seen its worth plummet in the recent past while Bitcoin Gold was rejected outright. This shows that the investors are only interested in projects that work and therefore Bitcoin has a dominance of more than 65% right now because of it.
Gartman does state that he had no hard feelings against the cryptocurrency market. That won’t help him in the future when he will prove to be wrong just like JP Morgans and Warren Buffets who claimed Bitcoin was going to crash.
Image source: pixabay.com
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