‘Bitcoin scarcity is dead’: Crypto executives push back on viral claim

CoinTelegraph

by Yohan Yun

February 24, 2026

AI-Generated Deep Dive Summary

Bitcoin’s long-standing scarcity narrative is under fire as a viral claim suggests that derivatives like cash-settled futures and ETFs have rendered its 21-million-supply cap “theoretically infinite.” Robert Kendall, author of *The Kendall Report*, argues that the introduction of these financial instruments has fundamentally altered Bitcoin’s valuation logic. He claims they’ve effectively stripped away the fixed supply model, which was once a cornerstone of Bitcoin’s perceived scarcity and value. Analysts are pushing back against this notion, emphasizing that derivatives don’t create new Bitcoin. While these instruments allow for greater liquidity and accessibility, they don’t increase the total supply of BTC. The 21-million cap remains intact, as derivatives only facilitate trading and speculation on existing coins. This distinction is critical in understanding why the claim that Bitcoin’s scarcity has been invalidated is misleading. The debate over Bitcoin’s scarcity comes amid broader market volatility and investor uncertainty. Recent price drops have sparked various theories, including concerns about digital asset treasuries (DATs) under stress and lingering effects from October’s massive liquidation events. These factors, combined with the viral claim about derivatives, highlight the complexities of modern crypto markets. For readers interested in crypto, this matters because it touches on core principles of Bitcoin’s value proposition. While derivatives may expand its use cases and accessibility, they don’t dilute the underlying scarcity that has historically driven demand. Understanding these dynamics is crucial for investors navigating a rapidly evolving market landscape. The ongoing discussion also underscores the need for clearer communication about how financial instruments interact with crypto assets. Ultimately, the debate over Bitcoin’s scarcity isn’t just about derivatives—it’s about how the cryptocurrency ecosystem evolves and whether its foundational concepts remain intact in a more institutionalized and complex environment. As crypto continues to mature, these conversations will play a key role in shaping its future trajectory.

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Originally published on CoinTelegraph on 2/24/2026