Let me show you how right I am

Tuesday, 09 April, Year 5 d.Tr. | Author: Mircea Popescu

So, leaving MPEx out of this equation entirely, if just one percent of discretionary spending is redirected from hamburgers, disneyworlds and one arm bandits to Bitcoin, that’s a 3.3x increase of total supply side (330%). If this shift doesn’t happen during the course of a year, but during the course of two weeks the momentary supply side spike is more like 85x (8`500%). If we count MPEx into the story we’re already discussing 1000x’s (ie 100`000%) even if instead of percents we’re looking more at tenths and hundredths thereof.

On the Bitcoin supply side, conversely, things look quite grim. Up until recently Bitcoins were generated via mining at the rate of about three million a year. Starting with the current year mining rewards halved, which means yearly Bitcoin generation is 1.3mn tops. Out of this, a fraction between a third and a half will have to be sold to pay operational costs of the miners - so about 600`000 Bitcoins are meeting the market this year (although part of them are possibly meeting the market straight in the pockets of their owners, who bought mining gear in the first place to acquire Bitcoins, so they’ve paid for the rigs and electricity in fiat, are registering the tax-deductible loss thereof and keeping the Bitcoin).

~Bitcoin prices, Bitcoin inflexibility



Charts from blockchain.info, which has a bunch of them.

So there you have it. Am I right or what!

Category: Bitcoin
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3 Responses

  1. http://arstechnica.com/business/2013/04/bitcoin-crashes-losing-nearly-half-of-its-value-in-six-hours/

    Mai cumperi?

  2. Mircea Popescu`s avatar
    Mircea Popescu 
    Thursday, 11 April 2013

    Da' io n-am mai cumparat de pe la 12 incolo frate. Tine-te si tu mai la curent cu ce se intimpla prin zona ca altfel daca pici asa din supa la nimereala c-ai citit si tu ceva "prin presa" n-ai sanse. Presa in continuare preseaza cacat.

  1. [...] of previous claim regarding the number of Bitcoins coming to market turning out to be correct. [...]

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