You've made the mistake of assuming the only "supply" of coins is miners. That's not true. The BULK of the supply is actually people who already own coins putting them up for sale.
I haven't made that assumption at all. I claim that without additional coins being mined and brought to market, supply would equal demand and price would be stable OR supply would be less than demand and prices would rise until supply did equal demand.
This is just a restatement of the notion of supply and demand. We pretty much accept it as an axiom that prices will go higher, lower or sideways if supply is increased, decreased, or maintained, when demand is held constant.
Your real argument seems to be that some portion of the people selling bitcoins are doing so in error. They would be better off, in your opinion, if they would only stop doing things than they think are right, in their opinion.
Be careful when thinking that you can make decisions better for everyone else than they can for themselves. There are horrible things lurking down that road.
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The 7200 coins per day are not a "significant" supply to the market.
yes. yes they are. imagine an enclosed 5 gallon tank that is completely filled with water. Now add another pint of water. What do you think that does to the pressure? That's why small cap assets fluctuate so wildly.
Liquids don't really compress. The pressure would be infinite unless the tank burst, and you don't need a pint for that, even just a drop will do. Pedantic, I know, but this post got me in the mood.
My point exactly. Bitcoin has relatively low capitalization right now which means that small changes in supply or demand cause dramatic changes in price. This volatility scares away investors both in coins themselves but also builders of infrastructure, which is worse. It works for me, because I buy coins on the cheap, but it is bad for both the miners themselves and for the growth of the Bitcoin economy. It's better for everybody if we wait and sell near all time highs. That way we can reduce volatility and make money rather than increase volatility and lose money. It's win-win or lose-lose.
