Bitcoin’s supply is inherently deflationary, a feature that underpins its appeal as a store of value rather than a universal medium of exchange. This fixed-supply dynamic supports a narrative of long-term wealth preservation. As a result, Bitcoin attracts institutional interest seeking diversification and inflation-hedging characteristics.
As institutions assess Bitcoin, custody frameworks, liquidity solutions, and governance models become key considerations. The asset is increasingly viewed as a macro allocation that complements traditional assets, rather than a risk-on equity play. Yet price volatility and evolving regulation continue to shape adoption timelines.
Overall, Bitcoin’s deflationary design reinforces its store-of-value proposition and its appeal to institutional portfolios. However, its suitability as a global currency remains debated.
Leave a Reply