Keep in mind that as we go higher and higher the demand might be the same but the supply will be higher because some will start to take profits.
You can see this with GBTC, as we went higher so did their flows and some other BTC etf also had negative flows for a couple of days.
The higher we go the more difficult it’ll be to maintain that momentum.
Topic: Demand for bitcoin exceeds supply by a factor of ten? - page 2. (Read 432 times)
Demand is not something you can easily measure and then come up with a number like "10x higher" (or lower). There are ways we can speculate about demand and then the intrinsic value of bitcoin and I've always said that there is more demand than the supply (hence the intrinsic value is higher than this) but it is speculation, inaccurate and is definitely not 10x higher!
A smaller ratio is reasonable and it could even be suppressed by market manipulation (explaining why price isn't rising at that time despite higher demand) but higher ratio like 10x is impossible because price would shoot up to reach equilibrium. After all supply and demand have to be in equilibrium or close to it, otherwise price moves in a direction to reach it.
A smaller ratio is reasonable and it could even be suppressed by market manipulation (explaining why price isn't rising at that time despite higher demand) but higher ratio like 10x is impossible because price would shoot up to reach equilibrium. After all supply and demand have to be in equilibrium or close to it, otherwise price moves in a direction to reach it.
That's the current demand. But as we all know, demand goes up and down all the time.
Right, you always have to keep in mind that it is not a static thing.
Demand and supply are always in equilibrium. If 900 are being mined, maybe 9000 are being sold by others. If not, price would increase to a new equilibrium.
Well, I would qualify that this is at a specific price. In the last year the trend has been that supply has not matched demand by very little, so the price trend has been increasing. If there is demand for 900 bitcoins a day at a price of around $50k and only 850 are sold the way for those left not buying to prompt those holding bitcoin to sell is to raise the bid price.
Lose the "according to " and learn how Bitcoin works... The is no 'according to', it is straight math.
On average a block is found every 10 min meaning (on average) 144 blocks per-day are found. Current reward is 6.25BTC so yes that is 900 new BTC per-day being minted. In April the Reward drops to 3.125BTC making a daily total of 450BTC per day so no new news here... Note that fees attached to the block reward are not included in the calculation. Why? Because the fees are paid using already minted coin.
As for 'demand exceeds supply', um, that is where the perceived value of BTC or for that matter, any currency or other thing of value, comes from... Even now, the supply is just fine. At it's current exchange rates there are few things I can or would care to buy that costs more than a small fraction of what 1BTC is worth...
On average a block is found every 10 min meaning (on average) 144 blocks per-day are found. Current reward is 6.25BTC so yes that is 900 new BTC per-day being minted. In April the Reward drops to 3.125BTC making a daily total of 450BTC per day so no new news here... Note that fees attached to the block reward are not included in the calculation. Why? Because the fees are paid using already minted coin.
As for 'demand exceeds supply', um, that is where the perceived value of BTC or for that matter, any currency or other thing of value, comes from... Even now, the supply is just fine. At it's current exchange rates there are few things I can or would care to buy that costs more than a small fraction of what 1BTC is worth...
If the video is "straight truth" in your words then why denigrate it just because it is from Youtube? If it is "straight truth" then shouldn't you be praising it?
Youtube doesn't create the content it is simply a medium to communicate it. Don't confuse the two. So learn how Youtube works.
You forgot to take into account the existing coins that are being traded in the market on the daily.
That 900 being minted daily is on top of the circulating supply, too, so there's no undersupply or overflowing demand happening as the circulating supply kind of fills in those demands. It also goes up and down every single time, and you can't expect a bear market to keep a consistent demand similarly to that of a bull run.
Now if demand somehow overshoots and most bitcoins in circulation already belong to a lot of hands, you know what's next. However in the mean time that's not happening, as there are still loads of bitcoin available for grabs in exchanges and people are still not having that extreme FOMO that occurs during bull runs.
That 900 being minted daily is on top of the circulating supply, too, so there's no undersupply or overflowing demand happening as the circulating supply kind of fills in those demands. It also goes up and down every single time, and you can't expect a bear market to keep a consistent demand similarly to that of a bull run.
Now if demand somehow overshoots and most bitcoins in circulation already belong to a lot of hands, you know what's next. However in the mean time that's not happening, as there are still loads of bitcoin available for grabs in exchanges and people are still not having that extreme FOMO that occurs during bull runs.
It is true that on average, 900 new BTC are mined per day, and in the coming weeks it will become 450BTC, but it does not affect the market directly, as these 900 are not sold directly in the spot market, and most of them are sold OTC, so changing the supply will not immediately affect the price, but there is a possibility To increase demand in the coming months in exchange for a shortage in supply, which will cause the price to rise.
If the fees continue at an average of 0.2158 BTC/block, this will be after halving
Total block reward: 6.25 + 0.2158 = 6.4658
new total block reward: 3.125+ 0.2158=3.3408
6.4658/2=3.2329
Halving still works, so the cheaper the fees, there is a good chance that the price will rise and vice versa.
for high fees:
3.125+1.5 =4.625
Far from 3.2329, which means less influence of halving
If the fees continue at an average of 0.2158 BTC/block, this will be after halving
Total block reward: 6.25 + 0.2158 = 6.4658
new total block reward: 3.125+ 0.2158=3.3408
6.4658/2=3.2329
Halving still works, so the cheaper the fees, there is a good chance that the price will rise and vice versa.
for high fees:
3.125+1.5 =4.625
Far from 3.2329, which means less influence of halving
Demand and supply are always in equilibrium. If 900 are being mined, maybe 9000 are being sold by others. If not, price would increase to a new equilibrium.
Basically supply always meets demand in a market system.
Example: There are 10 bottles of water for sale at a price of 1 USD per bottle. Now 100 customer show up and want to buy a bottle of water.
What is the situation now: The customer start bidding for each bottle of water and the highest bidder gets 1 bottle and so on until all 10 bottles are sold. Supply meets demand at a certain price point
If you start to argue that you want for example a new car and like to pay only 5 USD per car, then of course there is a mismach between YOUR desired price point and the available supply of cars for sale at a market price.
Example: There are 10 bottles of water for sale at a price of 1 USD per bottle. Now 100 customer show up and want to buy a bottle of water.
What is the situation now: The customer start bidding for each bottle of water and the highest bidder gets 1 bottle and so on until all 10 bottles are sold. Supply meets demand at a certain price point
If you start to argue that you want for example a new car and like to pay only 5 USD per car, then of course there is a mismach between YOUR desired price point and the available supply of cars for sale at a market price.
That's the current demand. But as we all know, demand goes up and down all the time. So there might be days when demand is much higher than the number of new Bitcoins released. There are also times when the demand is much lower. This is basically the reason why there is high and fall of the prices as well. It's basically the result of supply and demand.
This is also the reason why halving is a big deal. The demand may rise and fall, but since adoption rate is still very low and is fast growing, it is generally rising. Now compare this with the new supply that does not rise and fall, but only falls lower and lower, we can safely predict that the price will keep on rising in longer time frames. That's why hodlers are winners.
This is also the reason why halving is a big deal. The demand may rise and fall, but since adoption rate is still very low and is fast growing, it is generally rising. Now compare this with the new supply that does not rise and fall, but only falls lower and lower, we can safely predict that the price will keep on rising in longer time frames. That's why hodlers are winners.
Lose the "according to " and learn how Bitcoin works... The is no 'according to', it is straight math.
On average a block is found every 10 min meaning (on average) 144 blocks per-day are found. Current reward is 6.25BTC so yes that is 900 new BTC per-day being minted. In April the Reward drops to 3.125BTC making a daily total of 450BTC per day so no new news here... Note that fees attached to the block reward are not included in the calculation. Why? Because the fees are paid using already minted coin.
As for 'demand exceeds supply', um, that is where the perceived value of BTC or for that matter, any currency or other thing of value, comes from... Even now, the supply is just fine. At it's current exchange rates there are few things I can or would care to buy that costs more than a small fraction of what 1BTC is worth...
On average a block is found every 10 min meaning (on average) 144 blocks per-day are found. Current reward is 6.25BTC so yes that is 900 new BTC per-day being minted. In April the Reward drops to 3.125BTC making a daily total of 450BTC per day so no new news here... Note that fees attached to the block reward are not included in the calculation. Why? Because the fees are paid using already minted coin.
As for 'demand exceeds supply', um, that is where the perceived value of BTC or for that matter, any currency or other thing of value, comes from... Even now, the supply is just fine. At it's current exchange rates there are few things I can or would care to buy that costs more than a small fraction of what 1BTC is worth...
According to this only 900 bitcoins are mined every day but the current demand is ten times that amount.
If that is true then it is not hard to imagine what will happen to the price of bitcoin.
https://www.youtube.com/shorts/YRKRn0Bozvc
If that is true then it is not hard to imagine what will happen to the price of bitcoin.
https://www.youtube.com/shorts/YRKRn0Bozvc
Jump to: