This plays a large role in Bitcoin's price appreciation as more coins are locked up over time. (Paired with the fact that Bitcoin's supply is programmatically scarce & inflation rate cuts in half every four years)
Over Bitcoin's existence, illiquid supply is up only.
Using July 19th 2009 as a starting point, on average illiquid supply increases by 1,117,230 BTC a year. Over the same time period, the median change is 855,263 BTC.
Subtracting illiquid supply from circulating supply gives you 4,375,356 liquid coins.
Using the average from above, it would take just 3.9 years for all supply to become illiquid at this rate.
Using the median, still just 5.1 years.
*doesn't account for new supply issuance
Am I literally saying all coins will become illiquid? No, absolutely not. Higher prices will incentivize selling.
Just using these figures to make a point:
Over time, more supply gets locked up as less supply comes on the market. With a long enough time horizon: Up Only.
- By Will Clemente
https://twitter.com/wclementeiii/status/1417287302410383364?s=11
I've had this question for a long time. I know the USA is printing money like crazy. But also, countries around the world are doing the same thing with their currencies. So isn't it a wash? Why does it matter?
Preston Pysh answered this for me:
https://threadreaderapp.com/thread/1470792736626331659.html
As the fog of war billows, we see truths and carnage that make little logical sense. This is not a story by Stan Lee. There are evil men on both sides. There are innocents on both sides.
The puppet masters have what they want. You’re afraid. You’re angry. You hate. And eventually you’ll suffer. They will reap the reward of your enslavement.
It doesn’t have to be this way. Remove yourself from the machine. Take back your life. Make no mistake, though. It won’t be easy. They need you fat, dumb, and happy. They will do whatever it takes to stop you.
Start slow and covertly. Unsubscribe from the media and tech they use to control your emotions. Verify their claims on reality. Assume the narrative is false until proven true. Unplug.
Find your community. Build trust in the service of others. Act locally.
Remove the yolk of fiat. This above all else. The masters main tool to control you is the bit and bridal of a corrupt money. Money that only they control. ...
