Bitcoin Marketcap
$1.86T
Gold Marketcap
$16.15T
BTC Settlement Volume (24hr)
$12.90B
BTC Inflation Rate (next 1yr)
1.17%
CASEBITCOIN making the case for bitcoin every day
Bitcoin Marketcap
$1.86T
Gold Marketcap
$16.15T
BTC Settlement Volume (24hr)
$12.90B
BTC Inflation Rate (next 1yr)
1.17%
CASEBITCOIN making the case for bitcoin every day
9 Aug 2019 | | Price when published: $11,928 (ROI since: +725%)
Filed under: fundamentals blogs
Consider why there is fundamental demand for bitcoin and why bitcoin is naturally volatile. Bitcoin is valuable because it has a fixed supply and it is also volatile for the same reason. The fundamental demand driver for bitcoin is in its scarcity.
...
While demand is increasing by orders of magnitude, there is no supply response because bitcoinβs supply schedule is fixed. The disparity in the rate of increase in demand (variable) vs. supply (fixed) combined with imperfect knowledge amongst market participants causes volatility as a function of price discovery.
What do you think of this piece?