So I was thinking about how inflated the crypto market cap is, and it dawned on me. There are 16.9 million BTC in circulation. There are more than 16.9 million people with over 1 BTC portfolio value. So what happens if a bank run scenario was to play out, and everyone tried to withdraw to cold storage?
Basically my conclusion is that there isn't enough BTC in existence to support this market, as the current portfolio value of the crypto market is MUCH more than 16.9 million BTC. This isn't bear FUD btw I'm the biggest bitcoin bull ever, I love this innovation. But this is also a scary thought I had.
Would love to hear your input on this even if you just call me a brainlet conspiratard
Really! It's almost as bad as gold bars, nobody in my area accepts them.
Anthony Morgan
This is why xlm will take over
Kayden Morgan
How are there more than 16.9million people with more than 1btc port?
Nolan Lewis
There are only 5 million active wallets with over 10$, this thread is a bad bait thread
John Gutierrez
he didn't express it very well, what he meant was that more than 16.9m people currently have a portfolio worth more than 1 BTC
Logan Hill
Please show us your numbers because you are implying the impossible.
inb4 you're just a brainlet and did your math wrong.
William Peterson
yeah I think all he's saying is that if everyone tried to convert all of their altcoins to Bitcoin at once it would never work, but really it would just drive the price of Bitcoin up and altcoins down in relation to Bitcoin.
There are a lot of reasons Bitcoin sucks right now, but I don't think this is one
Brandon Baker
congrats retard. this is why we want fiat pairings
Josiah Smith
there are 2,100,000,000,000,000 individual elements available for ownership on bitcoin, take off a few magnitudes for those available to trade on-chain, but every satoshi can be traded individually on a second layer, that's more than enough for everyone.
Brayden Miller
>yeah I think all he's saying is that if everyone tried to convert all of their altcoins to Bitcoin at once it would never work, but really it would just drive the price of Bitcoin up and altcoins down in relation to Bitcoin. exactly. it's just price elasticity. if everyne with eth tried to convert to BTC, the price of BTC would go up and ETH would go down.
If this happened so many shitcoins would be dumped into the buy side of the orderbook for each alt that the prices would dump to nothing. If everyone just wanted BTC only to pull to cold storage buy side of the book dries up because noone wants to trade any btc for shitcoins anymore. Your alt becomes worth little to no sats. Many that had 1 BTC portfolios no longer will. All btc would end up in cold storage. Even the alts with fiat pairs would be ground into dust through arbitrage.
this wouldn't necessarily even affect the btc price. It would only go up from people who sell alts into fiat (on alts with direct fiat pairs) to then buy btc.
Sebastian Morales
actually this would lower the price of eth in relation to bitcoin; but it wouldn't raise the price of bitcoin in relation to fiat if all the eth was sold directly into btc on eth/btc pairs
Ethan Morris
He ded?
Gabriel Wilson
He went under the train for sure. He gotta be dead
