just reading the first bit.. a few holes in the methodology
1. the 'readily available quantity of a thing to the annual rate of the production of that thing'
firstly. most mining(production) dont immediately end up in 'readily available'
- It's more readily available than it was when it was merely a
potential coin
2. market price is and has never been based on the supply of all coins in circulation. but just on the supply demand in an exchange. so its not about a 18m:0.65m ratio
- supply demand is based on monetary hardness. You are putting the cart before the horse. The demand is there
because of the hardness, not the other way around.
3. the 0.65m mined this year wont end up all adding to the 1.5m exchange hoard.. instead it is part of the 18m circulation with an unknown amount EITHER being hoarded privately OR put into an exchange.
-so what? Stock is the cumulative number of bitcoins mined. flow is the rate at which new coins are mined. stop complicating things.
the issue is thinking that S:F is a safe ratio long term is wrong. this is because
while you falsely believe that the 1.5m:0.65m means at any year it can only become 2.1m:0.65m and following year 2.75m:0.65
it cant
did you know tomorrow satoshiN could dump 1million coins in one go, just him alone.. far far more than production. and thus.. cause a bigger price dump than imaginable bringing next year to 3.15m:0.65m and thats before even thinking about the other 15million hoarded by people not playing on exchanges
imagine if everyone sold tomorrow
1.5m:0.655 turns into 18m:0.655 overnight
.. i try reading the rest and continue if i see other flaws in your thinking
emphasis though. the price is not based on the 18m circ.. but on the 1.5m exchange supply available easily to b bought or sold at a price
- you are severely over complicating things and putting the cart before the horse. Human action comes first, and the minutia of the exchanges comes second. Humans have always preferred a harder form of money because that hardness provides security, and humans want security. Stop looking at the trees for just a few minutes, and consider the whole forest.