Yes, my bad, I misspoke in that post.
I am just curious, is there any crypto that doesn't generate more coins after the Initial coin introduction?
Bitcoin Price Thread
- Thread starter Magna
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Yes, my bad, I misspoke in that post.
I am just curious, is there any crypto that doesn't generate more coins after the Initial coin introduction?
This is a good point but it only means that the pool of possible incoming holders is bigger. And there were ponzis in history that happened in multiple countries. It doesn't mean eventually it won't run out (of incoming money), specially that because other cryptos do exist plus forks, bitcoin isn't really unique or limited.
So it will just take LONGER. As I mentioned the high price has to be supported by more and more money. Right now it is 18 mill PER DAY (assuming half of the new coins sold right away).
But let's imagine the future. Let's say BTC is 1 million bucks. Do you know what is the necessary amount every day to keep that price up? 1 billion dollar! So tell me just how long bitcoin (or actually the world) would be able to keep up pouring 1 billion bucks per day into the system to keep that price up?
Ripple and iota are premined.
I have no idea how many of the freshly mined coins are sold right away but OK say its half and your figure of 18 M usd. Thats not much globally considering many folks have not bought any and more will be able to via standard routes with market etfs etc via stockbrokers.
The mining rate of bitcoins is slowing down. So many less coins per day by the time if it ever hits 1 M usd. Once stopped no new money is needed.
1. I agree, globally it is not that bad. But the expectation is that the price will go much higher, so this "needed to support price" new money will also go up. And not just for Bitcoin but for every appreciating crypto. LTC needs 2 million per day using the same assumption.
So because this problem exist for all cryptos, the increase in minimum new money needed is exponential, or some crypto has to collapse.
2. Not fast enough. If we were talking about finishing mining in a decade, that would be fast, but for the next 20-30 years this downward pressure will exist.
Lots of cryptos collapse. Only a few will survive. Bitcoin is at the stage Facebook is at. It dominates the space and if new coins come up with some unique features it can just copy them. Bitcoin and ether dominate the market cap and get all the free publicity. They are also a bit different by design.
In stockbroker accounts I can only buy either bitcoin or ether. Thats where only a small percent of investment portfolios needs to go to buy the new coins. For other coins I have to go to more dodgy financial areas.
The shitcoins launched by rappers and crooks you can forget about.
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It is very difficult to get fiat into a bitcoin exchange at the moment as they are all overloaded.
You also seem to be picking numbers out of the air e.g. miners selling coins. I am not interested in getting into a technical debate on inflation or deflation I just want to make money. To me the new coins are not enough to satisfy the demand which is why the price is going up. It is just fecking obvious. So as long as that is the case go long. At some point I may go short but not now.
The miners are hodling. They sell the minimum to meet expenses.