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The price of Bitcoin is not supported by the amount of fresh money coming in. It’s based on the lowest price a current Bitcoin holder is willing to sell for. I
by cookingrobot 4y ago
The price of Bitcoin is not supported by the amount of fresh money coming in. It’s based on the lowest price a current Bitcoin holder is willing to sell for.
If all Bitcoin holders decide tomorrow that it’s worth $200k per coin, then that’s the price, even if there are very few buyers at that price.
It’s like the price of a stock: it’s not dependent on trading volume.
- yobbo 4y agoTo be accurate, the equilibrium price is the highest price a buyer is willing to pay, and that someone is willing to sell for. If the highest price is zero, there is no market, and mining would cease.