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Topic: What's next for bitcoin after supply drain? - page 2. (Read 361 times)

sr. member
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As the title says, what happens. As the supply goes lower, the prices/demand go up but what happens when the supply is drained? Will we ever reach a price ceiling or the prices will still go up? I do not know any other question that I can think of but if you have one, feel free to reply on this thread if you have other questions.
We already mined huge amount from the total cap value of bitcoin which means we still have enough supply so the only chance can be the demand will reduce not the supply because whenever the supply decrease the price will increase so if less supply the price of bitcoin is keep going to be increasing.
full member
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Any Idea when would the DRAINING will happen ? and Why has to drain when the supply circulates constantly ? i don't see the reason for the question.
If I know when will it happen do you think I would be asking questions? Hypothetically everyone holds all the supply of bitcoin and does not plan to sell it, what happens next?

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It's a free market. By market forces, the price should reach an equilibrium when the demand is equal to the supply. If somehow the demand overwhelmingly exceeds the supply, then the price will rise. It continues until it reaches an equilibrium. It's simple economics. More demand, same supply = higher price.

It functions on simple economics.
Will it reach equilibrium if there is no supply, suppose that it is a free market, wouldn't that mean that anyone hodling would be okay to not sell their bitcoin to prevent a healthy circulation.
legendary
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Well with the current trend of institutional investors buying all they can as much as possible and hodling it as long as possible would be a different case right? Yes there will be people that will be selling it but there will come a time when it will only be a atomic percentage of the supply that they are filling in.
It's a free market. By market forces, the price should reach an equilibrium when the demand is equal to the supply. If somehow the demand overwhelmingly exceeds the supply, then the price will rise. It continues until it reaches an equilibrium. It's simple economics. More demand, same supply = higher price.

It functions on simple economics.
full member
Activity: 2520
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As the title says, what happens. As the supply goes lower, the prices/demand go up but what happens when the supply is drained? Will we ever reach a price ceiling or the prices will still go up? I do not know any other question that I can think of but if you have one, feel free to reply on this thread if you have other questions.
Any Idea when would the DRAINING will happen ? and Why has to drain when the supply circulates constantly ? i don't see the reason for the question.

If the supply is capped, that means that we will lose all of it to demands eventually right? I think I covered already the part where the price increase because the demand increase.
Demand and supply Will always be there no matter if the supply is capped or not , and remember that there are altcoins and that's what they made for , to Apply their use when the demand for Bitcoin is over , Hope that this will take effect in time , though we are too far from that , the estimate time is 2140 , means more than a hundred years from out time now.
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January 09, 2021, 03:59:16 AM
#9
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No because the "demand" that buys bitcoin is not always going to hold on to it for eternity. At some point people always end up selling their bitcoins one way or another (eg. selling directly to fiat or buying goods where the coins end up on an exchange eventually).
Well with the current trend of institutional investors buying all they can as much as possible and hodling it as long as possible would be a different case right? Yes there will be people that will be selling it but there will come a time when it will only be a atomic percentage of the supply that they are filling in.
legendary
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January 09, 2021, 03:51:00 AM
#8
Yes, I agree with the other that the supply is not going to be "drained". If OP means a reduction in offer, we are seeing it already: an increase in price. Also because there is more demand.

As for what happens next, it depends. Is more institutional investors start buying bitcoin and people keep withdrawing bitcoin from exchanges, thus reducing offer, there will be more increases in price but we don't know until what point. At point the price will be enough for people to be more interested in selling and not so interested in buying so the price will go down.
legendary
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January 09, 2021, 03:26:47 AM
#7
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If the supply is capped, that means that we will lose all of it to demands eventually right? I think I covered already the part where the price increase because the demand increase.
No because the "demand" that buys bitcoin is not always going to hold on to it for eternity. At some point people always end up selling their bitcoins one way or another (eg. selling directly to fiat or buying goods where the coins end up on an exchange eventually).
full member
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January 09, 2021, 03:13:49 AM
#6
The supply is always increasing even though the rate of this increase goes down. That means every 10 minutes (on average) there are more coins to be bought. You are confusing capped supply with decreasing supply. Bitcoin's supply is capped (has a maximum that can not be surpassed) but it is not decreasing.

The main reason why price goes up is when demand increases (in other words when bitcoin adoption increases and more people start buying bitcoin).
If the supply is capped, that means that we will lose all of it to demands eventually right? I think I covered already the part where the price increase because the demand increase.
legendary
Activity: 3472
Merit: 10611
January 09, 2021, 02:36:54 AM
#5
Why do you think the supply is going to be "drained"?
There are lower available coins to be bought. Mining takes time.
The supply is always increasing even though the rate of this increase goes down. That means every 10 minutes (on average) there are more coins to be bought. You are confusing capped supply with decreasing supply. Bitcoin's supply is capped (has a maximum that can not be surpassed) but it is not decreasing.

The main reason why price goes up is when demand increases (in other words when bitcoin adoption increases and more people start buying bitcoin).
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January 09, 2021, 02:28:41 AM
#4
Why do you think the supply is going to be "drained"?
There are lower available coins to be bought. Mining takes time.
Supply draining won't happen at any occasion. The mined coins aren't idle within a centralised system. The network will be strong as more and more usage gets counted. Maybe the denomination gets more zeros added for a single bitcoin.
Will these be enough to resupply the current available coin to cater the demand? AFAIK each block that is mined makes mining another block a little harder.
hero member
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January 09, 2021, 02:03:02 AM
#3
Supply draining won't happen at any occasion. The mined coins aren't idle within a centralised system. The network will be strong as more and more usage gets counted. Maybe the denomination gets more zeros added for a single bitcoin.
legendary
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January 09, 2021, 01:46:58 AM
#2
Why do you think the supply is going to be "drained"?
full member
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January 09, 2021, 01:27:53 AM
#1
As the title says, what happens. As the supply goes lower, the prices/demand go up but what happens when the supply is drained? Will we ever reach a price ceiling or the prices will still go up? I do not know any other question that I can think of but if you have one, feel free to reply on this thread if you have other questions.
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