I hope you are as good as last Tuesday or even better.
Sorry to bother you again on Bitcoin Musings NL. You know about Bitcoin & that’s great.
But there is more to it. There is something very simple, obvious and very important that you haven’t thought about Bitcoin yet.
It is – Demand & Supply.
But what about it? You must be thinking !!
Bitcoin’s supply is limited and finally capped with 21 million coins. No wonder you know this.
The last coin to be mined is in the year 2140. Most likely the year when we both will not be sending and receiving emails to each other anymore.
4 million coins are already lost and around 4 million more to be mined. So in total, in coming years we might have a total accessible supply of only 17 million bitcoins which can be owned.
The world’s population is 7 billion.
17 million is 0.242% of the world’s population.
And that’s it.
If you own 0.28 BTC and HODL, you can be certain no more than 1% of the current world’s population can EVER own more BTC than you. A modest investment of $1,830 today can ensure you are a 1%er in a future Bitcoin world.
If you get 0.1 BTC no more than 2% of the world’s population can own more BTC than you. Once this dawns on enough people there will be a stampede to try to get even 0.1. (Source- Twitter)
The thing about demand and supply is that it is so simple and obvious that it is underrated and almost ridiculed subconsciously.
Like this: Ah !! It cannot be just so simple…
But Bitcoin thrives on this demand and supply.
On the onset, it might look as two variables for any other commodity but in case of Bitcoin only of these variable matters and i.e. Demand.
Supply is fixed at 21 million coins, nothing can change it. No amount of mining power, no amount of cost or no amount of manipulation.
In that case, when the supply of something cannot be changed and if the demand goes up then the obvious thing to occur is the rise in the value of the commodity in question. In this case Bitcoin.
There is nothing more to it. There is nothing more to discuss or dig or any rocket science formula to it.
Bitcoin is the simplest trade of the century and yet the hardest !!
Note: This is not financial advice.
If you liked this stuff, you should probably sing-up for my weekly Bitcoin Musings Newsletter to get the future editions of it 🙂