Critic Questions Bitcoin’s Core Scarcity

A long-time Bitcoin critic, financial commentator Jacob King, ignited a firestorm on Thursday by labeling the cryptocurrency’s value a “gimmick” and forecasting its “full collapse.” The core of his argument targeted Bitcoin’s famed 21 million token supply cap, which he claimed is not economically meaningful or truly fixed.

King asserted that the supply limit could be altered if network participants agreed to the change. He suggested that the node infrastructure is centralized enough to make this possible, as it’s “operated by a relatively small group.” He further dismissed the value of scarcity on its own, comparing Bitcoin’s supply mechanics to a hypothetical market for “unwashed Christmas socks,” arguing that scarcity means nothing without genuine demand.

The Bitcoin Community Fires Back

The comments drew a swift and intense backlash from Bitcoin advocates, who flooded the discussion with counterarguments. Many pointed out that changing Bitcoin’s supply would necessitate a divisive hard fork—a fundamental protocol change so drastic that it would be highly unlikely to gain the consensus needed from users, miners, and exchanges.

One user explained that a new, diluted chain would fail to attract participants from the original. Another analyst emphasized the economic incentives that secure the network, stating, “For the supply to change, every single node would have to agree to have its savings devalued. Not going to happen.” In response, King dismissed his critics as “brainless maxis,” claiming it would only take “four seconds” to convince them to accept changes if influential figures endorsed them.

Predictions of a Multi-Year Bear Market

In a separate post, King claimed that Bitcoin has entered a bear market that will “drag on for years” and devastate investors who are overleveraged. He characterized prices above $90,000 as a “rare second chance for people to exit while prices remain high” and accused promoters of using distractions to lure in new buyers.

King also made the claim that MicroStrategy was “deeply underwater and facing imminent exchange delistings.” He concluded with a stark warning: “After the full collapse, everyone will look back and admit the warning signs were so obvious.” The community again pushed back, with one user pointing to Bitcoin’s history of recovering from severe corrections in 2014, 2017, and 2021.

A Contrasting Market Outlook

Despite the bearish predictions, the current market shows a different picture. At the time of reporting, Bitcoin was trading around $91,215, marking a 10% increase over the past week. CCN analyst Valdrin Tahiri noted that Bitcoin is gaining strength as macroeconomic conditions turn more supportive.

Tahiri wrote that “rate-cut odds are rising, leverage has been reset, global markets are recovering, and technical indicators are showing early signs of a breakout.” However, he remained cautious, adding that Bitcoin still faces significant resistance near the $98,000 to $103,400 range. A successful move above this zone, he suggested, could pave the way for new all-time highs.

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