If only half the BTC mined per month are sold, we would need about 500 million USD per month flowing into the market, just to support the price at 20k.
Per year, this would make about 6 billion. Which was roughly the total cash inflow of all crypto in 2017. For just Bitcoin alone.
And miner mine to profit in USD, not in BTC. Their electricity is paid in USD. Their rent. Their food and everything else. Do they really just sell half their bitcoin, if the average cost of a mined BTC is about $3-4k? Dont the want to make a profit with their rig?
So how can BTC ever be at or above 20k for an extended period?
Slowly, just for you: - miner mines new 500 new BTC - miner sells BTC, as he has to cover expenses - 500 * 20k = 10,000,000 USD needed to let the price hold - only 5,000,000 USD covered at 20k - 5,000,000 USD cashed out, 250 BTC left - miner panics "OMG, I need to cash out before retard B cashes out and drops the price even more!" - now 250 BTC buy orders at 19k - cashes out 4,750,000 USD - price now at $18k
James Young
Part of what keeps the ponzi going though is convincing people not to sell in the hopes of great riches in the future.
> >10,000,000 USD to let the price hold Retarded assumption because it assumes that people aren't in other alts or tether who won't trade them for BTC, in no way is 10,000,000 USD influx to the system required.
You also have no idea what percentage of mined BTC is sold to cover expenses (hint: it's not 50%)
>- miner panics "OMG, I need to cash out before retard B cashes out and drops the price even more!" lmao @ you if you think miners think like you do
Dominic Scott
>BTC rewarded is linear >market cap: how does it work? >6 billion a year is a lot >BTC currently has sub 1% global adoption, how can it possibly increase in value? >BTC miners are prone to "panic" dumps
What other stupidity can we conjure up?
Thomas Hernandez
yeah OP is just a retarded nucoiner, it's pretty apparent
Jonathan Anderson
>Part of what keeps the ponzi going though is convincing people not to sell in the hopes of great riches in the future. The bigger the miner, the bigger the incentive and need to cash out frequently. The more people mine, the bigger the miners, as smaller miners drop out (economies of scale).
>still misunderstands the point >should continue to spread "muh adoption" on twitter
>Retarded assumption because it assumes that people aren't in other alts or tether who won't trade them for BTC, in no way is 10,000,000 USD influx to the system required.
It is straightforward BTC --> USD what we need to assess, as it is about selling pressure, not buying power. Alts have no say here. If anything, they make it worse if you go the fiat --> ETH --> alt --> BTC --> fiat.
Evan Roberts
No, you are missing the most basic points and forming incorrect conclusion based on false assumptions. So i will make it as simple as possible.
BTC mining reward is not linear Demand is increasing as is adoption Spot price and market cap does not represent total equity invested
>supply decreasing >demand increasing
???
Isaiah Allen
>Alts has no say here
Incorrect. BTC at this point in time is most common trading pair. A increase in demand in directly affects the demand for BTC
Asher Lee
Big miners who have enough BTC to influence the market don't need to sell BTC to cover the costs of mining. They have a fuckton of cash already, they're accumulating BTC now for when it really DOES surge in price, then they'll dump half their bags or so
Brody Evans
>BTC mining reward is not linear It is. 1.800 BTC per day. There are three factors determining the profitability of mining BTC: - difficulty - price - costs (mainly electricity)
On difficulty and price, they have an inevitable negative impact, but no way to influence in in their favor. Which makes the profitability not linear, but the reward is in fact linear.
>Demand is increasing as is adoption Kek. You ever tried to actually use BTC? Adoption became myth, which BTC is not able to achieve.
>Spot price and market cap does not represent total equity invested Which is not the point here. It is about the lack of possibility of the spot price to hold above a certain price without a certain regular cash inflow, due to the fixed regular supply of "new" BTC and the inevitable need of the miners to pay their ever rising costs, due to exploding difficulty.
Sebastian Anderson
>Incorrect. BTC at this point in time is most common trading pair. A increase in demand in directly affects the demand for BTC
Alts still do not increase the overall fiat in the market.
So you think they: - accept the profitability of their business model to diminish by >5% every two weeks (without the possibility to change it, as ASICs are basically trash if they become obsolete) - hold their BTC through a bear market, rising governmental scrutiny and shrinking fiat/crypto - gateways - are willing to pay their expenses in the meanwhile with hard cash You never came near someone, who runs a business and knows how to analyze risks.
