Just an old idea, no need to hide it now 😉
Idea is that the price of and other mined tokens follows the supply trend.
As you can see the total number is always increasing, but in bitcoin’s case the rate halves every 4 years leading to an overall diminishing trend which should saturate at maximum supply (21 million tokens).
This is one of the reasons that I think will never do the 100k dream, although it’s still very speculative .
The main reason is the strong correlation between market price and network energy consumption.
Here the supply is estimated from market cap data (supply = / price), so that’s why there are intra-month fluctuations.
I tried to think of an explanation for why the price would be affected by the rate of production like this and I could only think that is due to miner trading activity, i.e. a certain return is required per in a given bull cycle, because oversupply depresses the price, one must pump higher during periods of higher production to ensure your per coin??? Maybe, idk tbh, but I imagine it’s due to some shady shit…
Published at Tue, 09 Apr 2019 18:28:45 +0000
