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This doesn't sound right to me. It seems like your analysis assumes that BTC has already become a store of value, and people are putting excess income into it,
by thebean11 6y ago
This doesn't sound right to me. It seems like your analysis assumes that BTC has already become a store of value, and people are putting excess income into it, like gold. In that future, why wouldn't there be buyers? There aren't new people earning money and investing excess income?
People need to turn gold into fiat in order to spend it. Those are people with excess wealth and not enough income. There will always be people on the other side, excess income but low wealth.
- Closi 6y agoMore specifically, I'm assuming that they are a speculative instrument where people are expecting positive growth (i.e. that bitcoins become more valuable over time). The supply of new people earning money who will want to invest income into Bitcoin has to be finite. Growth can't continue forever because you always need to find someone new who is willing to pay more than you did for a bitcoin/satoshi to keep the price growing, and there isn't an infinite supply of people with an infinite supply of money.
- deleted 6y ago[deleted]