Bitcoin shower thoughts

Let’s start with a hypothetical:

The market cap of “x” is $1000.

There are 100 units, each unit is $10.

$1000 ÷ 100 = $10

Let’s say a new unit is added, i.e 101 units.

This in turn dilutes the price of each unit.

$1000 ÷ 101 ≈ $9.90

Now, if the price of each is not to be diluted – we want a stable price of $10 per unit – then $10 would need to be added to the market cap.

$1010 ÷ 101 = $10

Considering Bitcoin,

If 900 new coins are mined, each day, for the price to be “stable”, let’s use 40k as example, then $36,000,000 needs to be added to the market cap, each day.

And for the price of Bitcoin to rise, in the example above, more than $36,000,000 needs to be added to the market cap.

If the price reaches $100,000 per Bitcoin, before the limit of coins mined is reached, do you think the amount of capital required to maintain a stable price is feasible/realistic?

Will we only see extreme highs once all coins are mined and the price per coin cannot be diluted by the addition of new coins?

Are we at a point where the capital added to the market cannot maintain the price? Hence the decrease in price from ATH.

submitted by /u/Coding-kiwi
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