BlackRock Accidentally Points Out Glaring Cracks in BTC’s Foundation… Investors Panic Sell

Bitcoin has a good run and finally gets above $100k and then people don't know how to act. If I had a dollar for everytime I saw a "Bitcoin will reach $1 million by 2025" I would have $5... But just when you thought the crypto crowd could relax, BlackRock came along with a sly grin and pointed out several glaring cracks in the foundation.

After years of "any day now" promises, Bitcoin has had a field day in 2024, doubling from its August lows. Wall Street FOMO played a big role, with BlackRock’s $10 trillion empire practically carrying the hype on its back. Trump gave Bitcoin his MAGA nod, Elon Musk warned the U.S. dollar is doomed, and the first Bitcoin ETFs made headlines by shattering records. BlackRock’s iShares Bitcoin Trust alone bagged $60 billion in assets like it was scooping candy at a pinata party.

Hodlers celebrated like they’d just won the Powerball. But before they could even update their Twitter bios to “Bitcoin millionaire,” BlackRock hit them with a disclaimer that might just send them back to their mom’s basement.

In a now-infamous explainer video, BlackRock praised Bitcoin’s scarcity, calling its 21 million supply cap a “hard-coded rule” designed to prevent the digital equivalent of printing money. Sounds great, right? But then came the fine print: “There is no guarantee that bitcoin's 21 million supply cap will not be changed.” And just like that, the Internet had a collective meltdown. Michael Saylor, crypto evangelist and MicroStrategy chairman, shared the video, inadvertently amplifying the panic. The Bitcoin faithful see this as a prelude to disaster. Joel Valenzuela, a vocal crypto advocate, quipped, “When the supply cap increase happens, it will have ‘always been part of the plan.’” Translation: BlackRock’s influence could be the beginning of a Bitcoin hijacking.

The fear isn’t entirely unfounded. Bitcoin’s supply cap is part of its code, and while changing it would require consensus among miners, developers, and node operators, it’s not impossible. We’ve seen something similar before during the Blocksize War of 2017, when miners pushed for a change, only to be overruled by the network. But here’s the scary part: If the supply cap were increased, it wouldn’t even be Bitcoin anymore. One developer definitely didn’t inspire confidence: “You might as well ask what it would take to turn Bitcoin into PayPal.”

So, why would BlackRock, the very institution propping up Bitcoin’s meteoric rise, plant this seed of doubt? Critics think it’s a power move… an attempt to wrest control of Bitcoin’s narrative from its decentralized roots. After all, Wall Street doesn’t like playing by someone else’s rules. But there’s another possibility: BlackRock is just being a responsible corporate giant, covering its bases with legal disclaimers. Either way, the damage is done. Jamie Dimon’s earlier jab—“How the hell do you know it’s going to stop at 21 [million]?”—now seems prophetic.

For now, Bitcoin’s $100K milestone remains a historic moment, but cracks are forming in its foundation. Whether these concerns are legit or just fear-mongering, one thing’s for sure: the Bitcoin community has trust issues, and BlackRock just handed them another reason to freak out.

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