Topic: Demand for bitcoin exceeds supply by a factor of ten? (Read 437 times)
It's already happening the demand shock, price skyrocketing to 64k
the blockchain is constantly having transactions there are people buying, there are people selling and there are people mining bitcoin so itll be quite difficult to come up with an accurate estimation of demand but one thing for sure bitcoin will continue to rise up.
in the next following months i believe bitcoin is gonna attract more investors from all around the world, maybe even attract governments as well. all we need to hope for is governments do not restrict and ban bitcoin from our respective countries.
in the next following months i believe bitcoin is gonna attract more investors from all around the world, maybe even attract governments as well. all we need to hope for is governments do not restrict and ban bitcoin from our respective countries.
Bitcoin is a digital assets which is acceptable across the globe as a means trading, payment and investment. Hence Bitcoin is highly demanded currently because of how it been programmed from the creator, which is every Bitcoin halving their most be a reduction from miner's and it always occur every four years counting and that is how Bitcoin keep increasing in demand and supply keep reducing that skyrocket the Bitcoin price.
Even without knowing exactly how many new coins are added to the circulating supply, it's actually easy to conclude that the price of Bitcoin is directed nowhere else but up. Adoption itself is still low. Despite that, however, the price has already reached tens of thousands. The potential market is still too huge. How many people in the world are actually interested in having Bitcoin? Less than 10% probably? What if it grows to 40%? What if it grows to 80%?
Besides, we know that people are only taking cue from the decisions of powerful individuals and companies. They may call Bitcoin a Ponzi or whatever, but it only takes a Jeff Bezos to consider Bitcoin legit for thousands to immediately get converted. And this is slowly happening. Even Trump who used to call Bitcoin a scam is now recognizing that "many people are embracing it", that he's "seeing people wanting to pay Bitcoin", and so "I can live with it one way or the other.” To a solid Trump supporter who doesn't like Bitcoin, would he/she not reconsider simply because of this?
Besides, we know that people are only taking cue from the decisions of powerful individuals and companies. They may call Bitcoin a Ponzi or whatever, but it only takes a Jeff Bezos to consider Bitcoin legit for thousands to immediately get converted. And this is slowly happening. Even Trump who used to call Bitcoin a scam is now recognizing that "many people are embracing it", that he's "seeing people wanting to pay Bitcoin", and so "I can live with it one way or the other.” To a solid Trump supporter who doesn't like Bitcoin, would he/she not reconsider simply because of this?
Geometrically the amount of Bitcoin that is generated per block is going to decrease by 50 percent in reduction at every 210,000 blocks or at every four years . The number of Bitcoin can not exceed very small in amount than 21million,and so the money available to put aside by algorithm which looks at Bitcoin blocks and raw transactions, because of its limited supply of 21million Bitcoin will create scarcity that will influence it's market price.
When Bitcoin price is affected by supply,it also affects the demand of the markers,and it's available numbers which will now make investors to compete. The demand of Bitcoin can't be measured,and so the price of one Bitcoin will always be one Bitcoin not withstanding it's demand ,and since Bitcoin 's aim is to be decentralized,it can not rely on third party or a central authority to function
When Bitcoin price is affected by supply,it also affects the demand of the markers,and it's available numbers which will now make investors to compete. The demand of Bitcoin can't be measured,and so the price of one Bitcoin will always be one Bitcoin not withstanding it's demand ,and since Bitcoin 's aim is to be decentralized,it can not rely on third party or a central authority to function
Bitcoin demand is hard to predict or estimate. We can observe that there's growing interest in it, but we don't really know what those new holders are planning to do. Are they believing in Bitcoin as a hedge against fiat currency, or are they merely speculators who plan to ride the bull run and ditch Bitcoin when it crashes?
Even that were true, 1BTC is still a lot of money for some investors, some might not have reached that 1 yet in their whole journey so I don't believe that it's got some crazy demand that you're saying, it sure got a high demand but not as high as you think OP, if this was the case then we would've seen the bitcoin go much higher than what it does right now, that's how I think it will work.
I get it. I mean not everyone can drop big bucks on a whole Bitcoin. So even if there's demand, it might not be as crazy as some suggest. The price is influenced by lots of things like how people feel about it, rules from the powers that be and bigger economic stuff. It's a mix of factors, not just how badly folks want it
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
How do they measure demand in this case? I mean, if you wanna buy Bitcoins, you can buy anything from 0.00000001Btc to millions of Bitcoins. So, technically, if I want to own Bitcoins, I can buy 0.001 and own it. That's why I don't understand how can one measure demand. Do we measure demand according to how many people want to own one Bitcoin? I mean, with this current price, you don't have to be in queue to buy a bitcoin, you can buy it instantly, with a single click, that's why I don't get it. By the way, there is an enormous demand on dollar, even on a single dollar but that doesn't mean that the purchasing value of dollar is increasing. Bitcoin's price is also not only demand and supply but speculation plays a huge role too. 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
According to this only 900 bitcoins are mined every day but the current demand is ten times that amount.
But what if look at it from the other side? A total of 21 mln. bitcoins can be mined. 19 mln. bitcoins have already been mined. You can buy bitcoin in many ways and in many places. That is, there is no shortage.If that is true then it is not hard to imagine what will happen to the price of bitcoin.
Just the opposite. The price of bitcoin is very unpredictable. And this is called volatility.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...
The value of BTC (other thing of value) is formed not only from “supply and demand”. 
Even that were true, 1BTC is still a lot of money for some investors, some might not have reached that 1 yet in their whole journey so I don't believe that it's got some crazy demand that you're saying, it sure got a high demand but not as high as you think OP, if this was the case then we would've seen the bitcoin go much higher than what it does right now, that's how I think it will work.
Even if the demand is high but some people didn't demand bitcoin to have 1 btc but to have some btc. As you have explained, to some people that buying 1 BTC cost so much money where some people does not cost so much money. Let's say in my country, 1 btc is already 1 million+ in fiat currency where as some country that 1 btc is 50k dollars. You can see the difference in cost of each btc in different countries that's why the demand is also different from each person. In terms of situation like an auction then the most money osid in order to acquire 1 btc will be the one who gets it which doesn't include people who doesn't have lots of money.
Even that were true, 1BTC is still a lot of money for some investors, some might not have reached that 1 yet in their whole journey so I don't believe that it's got some crazy demand that you're saying, it sure got a high demand but not as high as you think OP, if this was the case then we would've seen the bitcoin go much higher than what it does right now, that's how I think it will work.
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.
If that is true then it is not hard to imagine what will happen to the price of bitcoin.
The supply is actually much higher than the coins being mined, for two reasons:
The first one is that there are loads of people and entities who are looking to dump their coins onto the market, which means there are plenty more for people to buy.
The seconds reason is that mined coins are not immediately available to spend since you have to wait for 100 blocks before you can spend the output of a coinbase transaction.
Notice how the price is only rising a little bit and not too much, or even staying steady sometimes? This is cased by only slightly higher demand as opposed to supply. Or sometimes the two are even equal.
The part about 900 BTC per day is simply a fact, as described and explained by NotFuzzyWarm. The part about the 10x demand, however, is more controversial. He's saying that 9,000 BTC is bought per day by two major Bitcoin ETF companies. I'm not sure where he's getting that information, but even assuming it's correct, it's still not right to compare it directly to the amount of new BTC being mined every day because there's plenty of BTC in circulating supply, plenty of BTC sellers, and also because we don't know how long this accumulation phase by ETFs will last.
And then, comparing 900 BTC per day with 9,000 BTC accumulation, he somehow jumps to 20x price increase conclusion. That's unsubstantiated.
And then, comparing 900 BTC per day with 9,000 BTC accumulation, he somehow jumps to 20x price increase conclusion. That's unsubstantiated.
I don't think we can compare ETFs with real Bitcoin in terms of adoption. The demand for them is very limited and is not going to grow over time, specially since it is a local thing not global like bitcoin itself.
Bitcoin Spot ETFs we are talking about are from USA and they only serve US. citizens. There are some other Bitcoin Spot ETFs in other nations but they are for local citizens, not global and not open accessed for everyone.Even in the USA. there are some conditions to buy shares of those Bitcoin Spot ETFs and not all investors can meet those conditions. Customer and investor population of Bitcoin Spot ETFs are very limited, not wide like Bitcoin.
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However, with Bitcoin as the price grows there is increasing amount of media coverage (free advertisement) for it that attracts even more people to Bitcoin. That means the demand increases as the price goes up.
Bitcoin Spot ETFs are very helpful to Bitcoin market in 2023 and 2024 with effects like you said. It's free advertisement for Bitcoin from companies that want to launch their products related to Bitcoin and get profit. 
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.
I don't think we can compare ETFs with real Bitcoin in terms of adoption. The demand for them is very limited and is not going to grow over time, specially since it is a local thing not global like bitcoin itself.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.
However, with Bitcoin as the price grows there is increasing amount of media coverage (free advertisement) for it that attracts even more people to Bitcoin. That means the demand increases as the price goes up.
I think the flows are slowing down. So far without blackrock we are about flat for the day. I think we might end up at $200M or so for the day.
Last Friday was also slower than usual. I don’t think we will have a period of 6 days where we got $500M of flows a day. But as long as these flow are not negative then we should be good.
It’s normal for many to take profits as we head higher. Many took profits in the $50k if they bought at the $40k dip at end of January.
Last Friday was also slower than usual. I don’t think we will have a period of 6 days where we got $500M of flows a day. But as long as these flow are not negative then we should be good.
It’s normal for many to take profits as we head higher. Many took profits in the $50k if they bought at the $40k dip at end of January.
The simplest way to see in real time what the buy/sell amounts available and their pricing is to just use a site like https://bitcoinity.org/markets/coinbase/USD
Pick your local currency and exchange, in this case Coinbase and USD, and it is all displayed...
Pick your local currency and exchange, in this case Coinbase and USD, and it is all displayed...
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.
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.
Exactly it is just a simple demand and supply chain. Since the last quarter of last year when the hype around bitcoin ETF started the demand level was higher and that’s why you could see that we have been in uptrend since and only got a heavy correction when GBTC started sell and also Microstrategy too. But right after that when the news of other ETF approved entities started buying we saw the price increasing and up till now in that zone. So when you see the buy side (price increase) is higher than the sell side then we can say the demand is higher than the supply but we can’t just simply quantify it base on percentage. The best thing we can have is the buying volume at that time which is also not accurate.
I will have to disagree with you that supply will overshadow demand yes it would after a long bullish period but overall the demand will increase more because of the massive adoption coming into bitcoin
The scarcity of every good always increase its demand and judging from the population in the world and with basic economical knowledge the higher it gets demanded the lower it circulates because of fear of missing Out but currently with the population of exchanges and Bitcoin adoption there is a tendency that there are lots of Bitcoin in exchanges waiting to be purchased/ claimed.
Scarcity does not always lead to value.Use cases and utility of it will make its value and very fortunately, with Bitcoin we have all, scarcity, use cases and utility. It explains Bitcoin growth in adoption, price and value since 2009.
Developers, scammers can use Bitcoin source code, fork an altcoin, change the total supply to 10M or 5M but its shit coin will not have price like x2 or x4 of Bitcoin price.
How many Bitcoin forks are there?
The scarcity of every good always increase its demand and judging from the population in the world and with basic economical knowledge the higher it gets demanded the lower it circulates because of fear of missing Out but currently with the population of exchanges and Bitcoin adoption there is a tendency that there are lots of Bitcoin in exchanges waiting to be purchased/ claimed.
Perhaps there is no definite amount of demand, we all speculate at different levels the number of demand but it all mere speculations because it could be higher or even lower than we expected. so the your definite amount of 10x is obviously wrong/correct at the same time so it would be better left out that miss information.
Perhaps there is no definite amount of demand, we all speculate at different levels the number of demand but it all mere speculations because it could be higher or even lower than we expected. so the your definite amount of 10x is obviously wrong/correct at the same time so it would be better left out that miss information.
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.
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.
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
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