Block reward rate: 6.25BTC. 144 blocks are mined per day. Coins are sold by miners to pay for their power and operating expenses. This means 6.25x144x500000 = $450,000,000 per day is how much new money would need to be brought in to keep the price stable. Per day. That works out to $164,250,000,000 in new money per year to keep the price stable.
The more expensive bitcoin gets, the more new money has to be brought in to prop the price up.
At $500K per coin $164B per year in welfare is extracted, burned up and wasted. That's the only math you need to do, tbh, when estimating future coin value.
This is just pumping by the world's biggest bag holders.
> ...and printing money like a banana republic.
And yet, inflation is likely to achieve an effective rate of 0.44% this year.
The more expensive bitcoin gets, the more new money has to be brought in to prop the price up.
At $500K per coin $164B per year in welfare is extracted, burned up and wasted. That's the only math you need to do, tbh, when estimating future coin value.
This is just pumping by the world's biggest bag holders.
> ...and printing money like a banana republic.
And yet, inflation is likely to achieve an effective rate of 0.44% this year.