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Senators and regulators explain why the $60 billion collapse of a major cryptocurrency is not the industry's Bear Stearns moment
Bitcoin has reached a new goal. The amount of BTC that can be bought is not enough to meet the demand. Mined: The 19,000,000th bitcoin has already been found and made into a new bitcoin.
In 13 years, 90.5 percent of the bitcoin that will ever be made has been mined. Remember, there are only 21 million people in the world. And what about the other 2 million? 118 years from now, they will be mined or made.
No, not enough for everyone. Yes, but not all at once. There are more than 7 billion people on Earth, but there are only 19 million BTC (minus those that have been lost). In fact, if there were 21 million BTC and everyone got 0.003 BTC each, that would be enough.
It's not even that, though. A lot of people are buying. Many more people buy than sell, so the price tends to go up.
Is this trend, where more people buy than sell, going to keep going?
Do not know. That's not the only thing we know about bitcoins. We also know that it's not just people who are getting them. "Terra," which is a cryptocurrency project, is buying more than $100 million worth of BTC every day. Its native cryptocurrency is Luna. Almost 2,700 BTC or three times the amount of BTC that is mined each day.
People on the platform said that they want to reach $10,000 million to help support a stablecoin called UST that works on their blockchain. Currently, it has more than $1,400 million in the bank.
People aren't the only ones who are buying it. You can find other cryptocurrencies as well as businesses, countries, and even whole countries that use them.
Bitcoin's basic rules
Let's start with the basics. As a general rule, we talk about "fundamentals" when we talk about how buyers and sellers act, how long they keep bitcoins, how much BTC they have in exchanges, and how much BTC they have stored in wallets, for example.
It doesn't stop there. The fundamentals also include the big news about bitcoin. As an example, the United States is trying to get it regulated, and El Salvador has made it legal tender. This cryptocurrency also played a big role in the war between Russia and Ukraine.
Here are some optimistic arguments:
About 65% of the BTC supply in the market has not been touched in more than 1 year.
If there is a rise in demand like we are seeing with Terra, then the price will rise even more. This is because they can't be sold.
In the next part, we'll find out how much of all BTC short-term holders own (those who sell in a short period of time after buying).
Holdings that last for a short time.
People who hold BTC for short periods of time don't own very much of it. This is shown in the graph. Historically, the price of Bitcoin tends to rise after these points.
Finally, we can see below that the total number of Bitcoins on exchanges is very low, only about the same as in 2018.
Today, there aren't enough Bitcoins for sale to meet the demand that the market is creating, which means that the price of this cryptocurrency will go up.
More than half of the coins haven't been moved in more than a year. BTC is in the hands of people who plan to keep investing for a long time. There is a lot of pressure to buy from Terra. So, the price of Bitcoin is now between $46,000 and $48,000, which means that the price has come back. For at least two and a half months, Terra says that people are going to keep buying, which is good news for them.
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