Web3 Daily

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There's WAY less Bitcoin available than you'd think. Here's why that's a very good thing...

Web3 Daily

TL;DR

  • We beat you over the head with this equation, a lot, but it bears repeating - because it's the main reason Bitcoin goes up over time: Lowered supply + increased demand = increased value.

  • We have 19.51M BTC in existence, 14.85M of which are either being held long term, or lost forever...That leaves us with 4.66M BTC (~$124B worth) available to buy and trade.

  • If the folks at BlackRock were to get their Bitcoin ETF approved, and allocated just 1.25% of their total assets under management to the ETF (assets which total ~$10 trillion)...There would literally be no more Bitcoin available to purchase.

Full Story

We beat you over the head with this equation, a lot, but it bears repeating - because it's the main reason Bitcoin goes up over time:

Lowered supply + increased demand = increased value.

Sure, it's simple. Stupidly simple. But idiocy and genius are often one-and-the-same in crypto (see header image ☝️).

What we want to talk about today is the first part of that equation, the bit about 'lowered supply.'

Because right now, the following is true:

19.51M BTC are in existence.

14.85M of those are owned by long-term holders (aka folks that have held their BTC for 155 days or more).

And according to ​Chainalysis​ - 5.25M BTC of that 14.85M BTC that aren't 'long-term holds,' as much as they have been 'lost forever.'

So. We have 19.51M BTC in existence, 14.85M of which are either being held long term, or lost forever...

That leaves us with 4.66M BTC (~$124B worth) available to buy and trade.

That ain't much!

And it means Bitcoin is going to be way more sensitive to any increases in demand than you might think.

All we need now is an uptick in demand...which may not be far off. For example:

If the folks at BlackRock were to get their Bitcoin ETF approved, and allocated just 1.25% of their total assets under management to the ETF (assets which total ~$10 trillion)...

There would literally be no more Bitcoin available to purchase.

And as the theory goes: lowered supply + increased demand = increased value.

Very exciting!