Sunday, 1 November 2015

A Tautology: Coins will end up in the hands of long-term holders


By definition that is what will happen but I think this effect is more significant that it initially appears. When there is a finite amount of something, that supply will potentially dry up. For some time now the amount mined has been absolutely dwarfed by volumes. So the supply might be coming from long-term holders but that source can't last forever.My basic point is and has been for a long time that some percentage of the total volume is disappearing essentially into the hands of people who want to hang onto them and the total volume is so large that a modest percentage will cause the supply to dry up very fast. We have seen days where the dollar volume is close to or even exceeded 1 billion which is about a quarter of the total number of existing BTC. If 10% of those went into the hands of long-term holders than in only a month or so there would be no BTC available. via /r/Bitcoin http://bit.ly/1HktYC8

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