Crypto News

Whether the limited supply of bitcoin, the basis of his success?

This week will be produced the 18 millionth bitcoin. Will still have three million — Anthony Pompliano for this reason tried to start a Twitter flashmob #3MillionLeft.

Unlike Fiat currencies, bitcoins offer was in the beginning defined by its Creator Satoshi Nakamoto. Arbitrary printing is not possible here.

The first million bitcoins, according to market research company Chainalysis, was mined by Satoshi (currently about $7.2 billion). Mining 18 million took about ten years; the next three million should be fully kamineni in 2140. Along with this, the Satoshi coins are still intact, and reckless pioneers of bitcoin will further reduce the amount of BTC in circulation. According to Chainalysis, a total of about four million bitcoins can be considered lost forever.

Limited supply of bitcoin became the basis for the two theory of its success: firstly, it is a “hard money” deflationary alternative to printed Fiat money. Combined with the reduction in the remuneration of miners (halinga) this provides a high ratio of “stock to flow”, when currency in circulation (stock) is divided by the number of new coins produced (the flow). A high ratio means “hard” currency, the price of which in the long term will only grow. The second theory has a simple formulation: the less bitcoins the more people will want to buy them.

Review Satoshi from 2011 suggests that the scarcity of bitcoin was a response to “lack of inner values”.

In a thought experiment Satoshi assumed the existence of “non-precious metal, as rare as gold,” but with the “boring gray”, which is not a very good conductor of electricity, is not very resistant or plastic and are useless for any practical or decorative purposes. However, the metal will have a “one magical property — it can be transmitted over a communication channel”.

He said, “if it somehow acquired any value for any reason” then people would use it as money. But it would have been impossible without any market value which, he believed, instead of “automatic original determination of the intrinsic value” could be caused by the deficiency.

Skeptics, on the other hand, wonder why the deficit should have an effect? There are lots of old things that are extremely hard to find, but they no one cares. As said, the opponent Pompliano in the transfer on CNBC, “there’s a lot that small, and nobody’s business.”

It is also not true that as a result of halving something must happen to the price of bitcoin. Litecoin already survived your halving in August. It is possible that this event, which is known in advance of the market, already included in the price of bitcoin.
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