On a podcast this week, Tim Kotzman, Host of the Bitcoin Treasuries Podcast and Founder & CEO of Jubilee Royalty, told me in 2015 that he had virtually no competition when acquiring mineral rights in West Texas. A simple phone call offering $5,000 an acre was often enough to close a deal. But by 2016, competition had arrived, and the price skyrocketed to $50,000 per acre.
Fast-forward a decade, and the landscape has transformed. Hundreds of firms now vie for what was once an obscure and undervalued asset.
This progression—an early, quiet accumulation period followed by intense competition—is precisely what is unfolding with bitcoin.
The first fifteen years of bitcoin saw little competition. Individuals could accumulate freely, much like early mineral rights buyers in West Texas.
The numbers speak for themselves: over 70% of the bitcoin supply is still owned by individuals, a sign that institutional involvement has been minimal, but that is about to change.
From Low Competition to High Stakes
Bitcoin’s price journey from near zero to $100,000 has been relatively quiet. Competition was largely between individuals, and most large pools of capital dismissed bitcoin. While some institutions participated, most notably MicroStrategy, it was few and far between.
However, the dynamics are shifting dramatically as we move into the next phase—bitcoin’s run from $100,000 to $1,000,000, where sovereign wealth funds, nation-states, corporations, and Wall Street compete for this digitally scarce asset.
Just as mineral rights became an increasingly contested asset in a year or two as the value of West Texas land was realized, bitcoin is following the same pattern.
Following on the momentum of 2024, 2025 is set to be an explosive year with competition for bitcoin unlike anything we’ve seen before.
The Competitive Pressure
In this hyper-competitive environment, individuals are now competing with:
Wall Street & Banking Institutions launching bitcoin products for investors seeking diversified exposures.
Corporations adding bitcoin as a strategic asset to bolster their balance sheet.
Nation states accumulating bitcoin as a hedge against geopolitical tensions and devaluing fiat currencies.
State and local governments buying bitcoin to strengthen their community and financials.
The entrance of these players means that demand will no longer be driven primarily by grassroots adoption. Instead, a wave of institutional-grade capital is on the horizon, forcing competition for every bitcoin that remains available. This dynamic is a natural progression for an asset that has matured beyond a niche experiment into a globally recognized store of value.
Competing for Absolute Scarcity
If the competition for mineral rights in West Texas taught us anything, it’s that the early, quiet phase doesn’t last forever. When the world wakes up to an asset’s scarcity and value, the price naturally responds. In bitcoin’s case, this competition will only intensify as supply constraints become more apparent.
Unlike natural gas or land, bitcoin is fixed at 21 million units. There is no new supply waiting to be unlocked through technological advancements or deeper drilling. This hard cap means that as demand grows, the only mechanism to balance it is price appreciation.
Bitcoin’s scarcity is set to increase further due to the halving occurring every four years. The most recent was in 2024, and the next was in 2028.
Each halving reduces the supply of new bitcoin entering circulation, making it increasingly difficult for new buyers to acquire bitcoin without paying higher prices.
We Are Still Early—But Not for Long
Bitcoin remains a $2 trillion asset in a world of $900T+ global asset value. The shift from a lightly contested accumulation phase to a fiercely competitive one is inevitable.
History has shown that those who recognize a paradigm shift early are best positioned to benefit. The mineral rights boom in Texas rewarded those who acquired assets before the industry matured. Similarly, bitcoin’s early adopters have already seen significant upside—but the next phase, where serious capital competes for a limited supply, will redefine what it means to be "early."
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Great analogy - it's also like looking at yourself in the mirror, and all of a sudden not knowing how you gained all that weight - slowly...slowly...then all of a sudden.