Bitcoin Market Cap

We don’t see much discussion on this concept, and it took me a long time to actually grasp it. I think when you look at the Market Cap of $1T and divide it by the number of bitcoin in circulation (say about 18M) you get the price. So naturally I assumed that we’d need an inflow of another $1T from somewhere to get the price to exceed $100k

A lot of FUD says, where will that come from. And the truth is, it’s not needed at all. The price could rise to $100k without anywhere near $1T influx as the price is simply determined by a balance between what people are willing to sell at and what people are willing to buy at. With more and more institutions utilising cold storage at an unprecedented rate, by the end of this year there will be a small fraction of floating Bitcoin in circulation. We can theoretically see the price go 2x/3x/10x without that many amount of trillions injected. This is a naturally deflating currency. Less and less money will be required to get it to from $1T to $2T to $3T.

It’s going up forever, Laura.

submitted by /u/SnooDonuts2975
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