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It's not about volume, but that to support a certain price bitcoin needs $x/day net inflow. To support $1M bitcoin, the market would need ~$1B/day of new money
by matteotom 5y ago
It's not about volume, but that to support a certain price bitcoin needs $x/day net inflow. To support $1M bitcoin, the market would need ~$1B/day of new money buying into bitcoin (at least for the next few years until the next reward halving).
- nightski 5y agoIt's precisely about volume, because that shows us that ~$1B/day of new money buying into bitcoin is already happening (actually $36/BN a day since for every seller - which includes miners btw - there is a buyer). Since the price has been going up, that means demand has been even exceeding supply lately.
- graeme 5y agoYou’re mixing up trading volume and inflows. Volume is just people trading back and forth. As a limit example, you and I could wash trade a single bitcoin back and forth a trillion times, for a volume of $60,000 trillion dollars. But that would pay no electric bills! It’s just money moving around. Miners pay bills from net dollars moving into the system from outside. There are no stats which track such inflows in crypto: it’s a hard thing to calculate. You’re also massively overestimating dollar volume. Bitcoin volume is 36 billion Tethers, which aren’t dollars. Dollar volume is max $2 billion per day. Today coinbase was $800 million. It’s tiny. https://coinmarketcap.com/exchanges/coinbase-exchange/ https://coinmarketcap.com/exchanges/coinbase-exchange/
- nightski 5y agoIt's volume on the exchanges. People trading back and forth on the exchanges shows up on the order book and influences the price. As you point out, USD is not the only currency BTC trades to. But let's say they do $2B USD per day. That still seems to be plenty, given that supply is meeting demand.