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RE: Day 19: Thoughts on Bitcoin forks and the new bubble
OK, guys, a few things I forgot to add here:
- Something very important I didn't consider this time. The total crypto market cap is 160B, there are 16,500,000 Bitcoin in circulation (lot less in reality consider the lost one). $160b / 16m = $9,600 per Bitcoin. If alts get sucked into Bitcoin, the price can get the push to 10k we were talking about.
- As the price increases, the difficulty goes higher, which pushes the miners to sell at higher price. At which point the price and the difficulty will find an equilibrium? No idea.
- The number of Bitcoins generated per block is now 25. Next round of halving we'll go down to 12 Bitcoins per block. We're getting closer and closer to a deflation point, where the number of Bitcoins produced is so low, that the price can only deflate. This isn't a relevant factor to push the price high in 2 months, but this scarcity was the result last year halving.
- FOMO is kicking in. As I was expecting. Brace your self.