
𝐓𝐗𝐌𝐂|Aug 21, 2025 12:01
Bitcoin's terminal supply is a cool feature, but it is not an argument for why it should be capable of performative magic. The limited supply on a given day is not affecting how price is determined. A TINY fraction of the coins in circulation actually trades on a day-to-day basis and that, along with derivatives markets, is where price is set. We're talking 30-50B a day of trading on a 2.2T asset. This is true of literally every thing that trades in a market. People really don't seem to accept this because every argument for why a 30% CAGR forever is possible is some version of "you don't understand absolute scarcity" or "we've never seen anything like BTC". These are Dunning Kruger mechanisms. I definitely understand scarcity. I think YOU don't understand how a market functions. You can rest assured you will not be diluted in BTC terms because it is programmatically scarce, THAT should be the takeaway, but it's not much of a factor in price performance day to day.(𝐓𝐗𝐌𝐂)
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