BlackRock Sparks Debate Over Bitcoin's 21 Million Limit

BlackRock Sparks Debate Over Bitcoin's 21 Million Limit

BlackRock reignited the Bitcoin supply cap debate with a video explaining Bitcoin's 21 million limit, adding a disclaimer that it is "not guaranteed." Bitcoin’s fixed supply underpins its value as a store of wealth, and any change could significantly impact investor perceptions.

The disclaimer drew criticism, including from MicroStrategy chairman Michael Saylor and other Bitcoin advocates. BlackRock, founded by Larry Fink, highlighted Bitcoin’s supply control as critical for purchasing power but suggested consensus changes could theoretically alter its cap.

A Bitcoin developer noted that such changes would require community consensus via a hard fork and would result in a network that is no longer considered Bitcoin. The debate also reflects miner concerns over long-term incentives as block subsidies halve every four years.

With 1.09 million Bitcoin left to mine, critics argue that an uncapped version of Bitcoin would deviate from its original design outlined by Satoshi Nakamoto.

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Bitcoin Drops Below $100,000 After Powell’s Comment

Bitcoin fell below $100,000 following comments from US Federal Reserve Chair Jerome Powell opposing a national Bitcoin reserve. Powell stated the Federal Reserve is prohibited from holding BTC and has no plans to change the law. Bitcoin’s drop comes after reaching an all-time high of $108,135. Other coins like Ether and XRP also declined by 6.5% and 12.64%, respectively.

Marketwide, the GMCI 30 index measuring top cryptocurrencies dropped 7.18% as bearish sentiment grew. Powell’s statement follows speculation fueled by President-elect Trump’s support for a strategic Bitcoin reserve. Analysts predict continued volatility, with factors like Trump’s policies and Federal Reserve decisions influencing future market movements.

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Sky Pushes MKR to SKY Migration for 2025

Sky, formerly Maker, is accelerating the migration from MKR tokens to SKY, targeting completion in 2025. Co-founder Rune Christensen confirmed the shift would make MKR a legacy wrapper representing 24,000 SKY tokens each. Governance decisions in November defined SKY’s tokenomics as deflationary, with mechanisms for long-term supply reduction and token burning.

The first subDAO, Spark, will launch under the updated Star framework to improve decentralized governance and operations. Sky plans to onboard additional teams to create new Stars, further decentralizing its ecosystem. A November poll saw 79% of stakeholders vote to maintain the Sky brand after its 2024 rebranding.

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El Salvador Makes Bitcoin Payments Voluntary in IMF Deal

El Salvador’s $1.4 billion loan agreement with the IMF includes making Bitcoin acceptance voluntary and reducing government involvement in crypto projects. Taxes will remain payable in US dollars, and the state-backed Chivo wallet will phase out public sector support. The deal follows four years of negotiations and aims to lower El Salvador’s debt-to-GDP ratio.

Despite IMF concerns over Bitcoin’s speculative risks, El Salvador plans to continue accumulating BTC, adding to its Bitcoin treasury holding. The National Bitcoin Office confirmed ongoing purchases of one Bitcoin daily. Surveys indicate limited Bitcoin use among citizens, with 92% not transacting with it as of October 2024.

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Data of the Day

Solana’s DApps generated $365 million in revenue in November 2024, with meme coin launchpad Pump.fun contributing $106 million. The platform faced backlash over user misconduct during livestreams, leading to a 66% revenue drop after halting the feature. Despite controversies, meme coin DApps have earned $509 million year-to-date, marking a 300-fold growth compared to January.

Telegram bots and Solana decentralized exchanges contributed $300 million and $141 million in revenue, respectively, in 2024. meme coins accounted for 83.7% of Solana’s DeFi revenue, which dominates the ecosystem’s total income. Other contributors included wallets, infrastructure, NFTs, and gaming applications.

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More Breaking News

• German regulators ordered Worldcoin to delete non-compliant biometric data within a month, prompting an appeal for clarity on anonymization standards.
• Curve Finance founder faced another liquidation, losing $882,000 in CRV as the token dropped 12%, amid ongoing fallout from previous debt and hacks.
• The Australian Securities and Investments Commission sued Binance for misclassifying retail investors, allegedly denying them essential consumer protections.
• The Open Platform (TOP) officially launched TON Space, a self-custodial wallet, with features for both custodial and non-custodial account management.
• Synthetix launched multi-collateral perpetuals on Coinbase’s Base network, enabling traders to use assets like cbBTC and cbETH as collateral for leveraged trades.
• Investors sued Hawk Tuah meme coin creators after the token lost 93% of its value, raising allegations of rug pulls and wallet manipulation.
• Ark Invest sold $3.9 million worth of Coinbase shares amid a 10% price drop following Fed Chair Powell's hawkish remarks, part of a fund rebalancing strategy.

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