/biz/ - Business & Finance

Test

Let me give you all a redpill.

Within the time span of each halving a block reward is 1% of the total ending supply for that halving period (210,000 minted coins per period with each coin being worth ~0.0000047% of supply).

However, we are reaching the third halving period. Every new BTC mined is worth 1/7th of the previous value because of the preexisting supply. So whatever impact a "newly rewarded BTC" had on the market, it's now worth 12.9% of that.

Now add into account the cost of mining BTC. A place on the higher end if the scale, like Vanuatu (where nobody mines) costs $327,125 to solve a block ($13,085 per). In Iceland and the US, which are more popular, it's around $118,700 ($4,700ish per). Venezuela, it's $13,274 ($531 per).

Now here is the redpill: even if the miners "hold out" their BTC and refuse to sell except at higher prices, the new rewards coming into circulation are so paltry, compared to the total supply, that no one will ever care to fill their asking prices. BTC is flowing freely, over a dozen million. The new BTC rewards in the next halving will be worth less than 0.00000001% of the total supply.

The meme log chart is being misinterpreted. We are stabilizing prices right now. Bitcoin will remain within 4-18k, barring any kind of manipulation from Bitfinex and Tether (which everyone knows is happening).

Let me give you all a redpill.

Within the time span of each halving a block reward is 1% of the total ending supply for that halving period (210,000 minted coins per period with each coin being worth ~0.0000047% of supply).

However, we are reaching the third halving period. Every new BTC mined is worth 1/7th of the previous value because of the preexisting supply. So whatever impact a "newly rewarded BTC" had on the market, it's now worth 12.9% of that.

Now add into account the cost of mining BTC. A place on the higher end if the scale, like Vanuatu (where nobody mines) costs $327,125 to solve a block ($13,085 per). In Iceland and the US, which are more popular, it's around $118,700 ($4,700ish per). Venezuela, it's $13,274 ($531 per).

Now here is the redpill: even if the miners "hold out" their BTC and refuse to sell except at higher prices, the new rewards coming into circulation are so paltry, compared to the total supply, that no one will ever care to fill their asking prices. BTC is flowing freely, over a dozen million. The new BTC rewards in the next halving will be worth less than 0.00000001% of the total supply.

The meme log chart is being misinterpreted. We are stabilizing prices right now. Bitcoin will remain within 4-18k, barring any kind of manipulation from Bitfinex and Tether (which everyone knows is happening).