Supply Shock

Where has all the toilet roll gone?

So is Bitcoin like toilet paper?

  • Bitcoin is not a consumable, in that it cannot be destroyed
  • The Bitcoin supply rate via mining is fixed in code and cannot be altered
  • Total Supply — there will only ever be 21 million Bitcoins that exist (aka the maximum supply)
  • Circulating Supply — there have been ~18.8 million Bitcoins mined to date (the current supply)

Not all Bitcoin is for sale though

  • Long-term idle: coins that may be inaccessible (‘lost’) due to loss of passwords or private keys (this is estimated at ~3 million!), or coins in wallets of long-term hodlers. The longer they don’t move, the more likely they’re not available.
  • Short-term exchange movement: the number of coins on exchanges and the rate at which they are being deposited or withdrawn may provide clues as to imminent market movement.

The On-Chain Game

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