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 <p class="paragraph">Due to its predictability, cryptocurrency investors often overlook Bitcoin (BTC) supply inflation. Understanding that predictable inflation still has economic effects can leverage investment results in this market.</p>
 <div></div>
 <p class="paragraph">In particular, Finbold looked into Bitcoin’s supply inflation from a different perspective. We aimed to understand the practical effects of these economics and provide valuable insights for BTC holders. This is achieved by calculating the exact price Bitcoin would trade if it ever hits its highest market cap.</p>
 <p class="paragraph">Proportionally, a commodity’s inflationary supply requires more demand in order to keep its same value (or <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a>). These two factors influence whether a commodity <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> rises or falls. Each cryptocurrency, including Bitcoin, has its unique economic structure.</p>
 <p class="paragraph">Notably, Bitcoin had an all<a rel="noopener noreferrer nofollow" title="-time" href="https://thebittimes.com/tag/time.html">-time</a> high <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> cap of $1.302 trillion on November 10, 2021, according to <em>TradingView</em>’s index. Meanwhile, BTC was trading for as high as $68,789, as registered by <em>CoinMarketCap</em>. An inverse calculation suggests a circulating supply of around 18.927 million BTC at that time.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="662" src="https://cdn.thebittimes.com/images/2023/11/30/3ed4bafacedc4c39a50d0e5c8fa5f787.webp" alt="CRYPTOCAP – BTC daily market capitalization." class="wp-image-140613" srcset="https://cdn.thebittimes.com/images/2023/11/30/3ed4bafacedc4c39a50d0e5c8fa5f787.webp 1024w, https://cdn.thebittimes.com/images/2023/11/30/3ed4bafacedc4c39a50d0e5c8fa5f787.webp 300w, https://cdn.thebittimes.com/images/2023/11/30/3ed4bafacedc4c39a50d0e5c8fa5f787.webp 768w, https://cdn.thebittimes.com/images/2023/11/30/3ed4bafacedc4c39a50d0e5c8fa5f787.webp 1536w, https://cdn.thebittimes.com/images/2023/11/30/3ed4bafacedc4c39a50d0e5c8fa5f787.webp 1875w" sizes="(max-width: 1024px) 100vw, 1024px">
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   CRYPTOCAP – BTC daily market capitalization. Source: <em>TradingView</em>
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 <h2 class="wp-block-heading" id="h-bitcoin-supply-inflation-and-its-economic-effects"><strong>Bitcoin supply inflation and its economic effects</strong></h2>
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       <h3 class="font-bold leading-6 " id="dogecoin-would-trade-at-this-price-if-doge-hits-its-all-time-high-market-cap">Dogecoin would trade at this price if DOGE hits its all-time high market cap</h3>
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 <p class="paragraph">Let’s explore BTC’s supply inflation and its economic implications. On November 30, Bitcoin had a circulating supply of 19.557 million coins. This results in a supply inflation of 630,000 BTC (3.32%) in two years, or around 1.66% a year.</p>
 <figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="564" height="220" src="https://cdn.thebittimes.com/images/2023/11/30/e813bf67e20f2829dc6cea8847448956.webp" alt="Bitcoin supply. " class="wp-image-140614" srcset="https://cdn.thebittimes.com/images/2023/11/30/e813bf67e20f2829dc6cea8847448956.webp 564w, https://cdn.thebittimes.com/images/2023/11/30/e813bf67e20f2829dc6cea8847448956.webp 300w" sizes="(max-width: 564px) 100vw, 564px">
  <figcaption class="wp-element-caption">
   Bitcoin supply. Source: <em>CoinMarketCap</em>
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 <p class="paragraph">The price projection also shows the relevant economic effects of this inflation. In case the leading cryptocurrency reaches its highest speculative demand of $1.302 trillion market cap, BTC would trade at a proportionally lower price than the corresponding all-time high.</p>
 <p class="paragraph">Considering the circulating supply at the time of publication, Bitcoin would <a rel="noopener noreferrer nofollow" title="trade" href="https://thebittimes.com/tag/trade.html">trade</a> for $66,574 at its highest capitalization. Interestingly, a loss of $2,215 (3.2%) from the previous <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> in 2021.</p>
 <p class="paragraph">However, this still indicates a potential 77% increase from the current price of $37,600.</p>
 <p class="paragraph">It is important to understand that the forecast requires the same demand as 2021 for Bitcoin. In this context, there are no guarantees that this demand will ever be seen again. On the other hand, it is also possible that a higher demand surges in the following years.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/bitcoin-would-trade-at-this-price-if-btc-hits-its-all-time-high-market-cap-tbt72226.html">https://thebittimes.com/bitcoin-would-trade-at-this-price-if-btc-hits-its-all-time-high-market-cap-tbt72226.html</a></p>

Bitcoin would trade at this price if BTC hits its all-time high market cap

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TheBitTimes

Ďalšie články zverejnené 30. 11. 2023

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