The Demand for Bitcoin currently is truly remarkable
While some tend to get caught up in the day to day price of bitcoin, the amount of demand it takes to push bitcoin where it's at is truly amazing when you really think about it.
Consider this...
On average there are roughly 900 new bitcoin created/mined every single day, and that's after the halving back in May, prior to that there were even more being created each day.
That 900 new bitcoin per day comes to 6,300 new bitcoin every week and roughly 27,000 new bitcoin created each month.
At current prices ($50k for math's sake) that 900 new bitcoin amounts to roughly $45 million per day.
Which also amounts to roughly $315 million per week, and $1.35 billion per month.
So, we need roughly $45 million worth of buying to come in each day just to offset the amount of new supply each day, if all the new supply were being sold each day.
We know that not all of it is being sold each day, but a big portion of it likely is.
Miners historically unload most of what they mine each day, though with robust futures markets they can better hedge themselves against price fluctuations and possibly hoard more than they were able to previous from "a going concern" perspective.
Yet Supply on Exchanges continues to drop...
Taking all the above into account makes the supply shortages on Exchanges all the more impressive.
When you see charts like this one, that show a huge drop in supply sitting on Exchanges in spite of increasing overall supply, it's all the more impressive:
(Source: @jrcornel/bitcoin-s-best-new-sink-that-no-one-s-talking-about)
We have had 27,000 new bitcoin being created every single month yet we are seeing millions of bitcoin leaving Exchanges over the last year.
That means that the demand is such that it is eating up all the new supply coming out, and millions of existing supply.
That's literally $10s of billions of dollars in demand, if not hundreds of billions.
It's truly remarkable when you think about it.
At some point the supply will overwhelm the demand, but that isn't likely to happen at the current price as institutions are happy to snatch up more and more supply at current prices as evidenced by CoinbasePro outflows and MSTR/TSLA/SQ buying around current levels:
@jrcornel/institutions-are-buying-the-bitcoin-dip-are-you
@jrcornel/square-bought-another-usd170-million-worth-of-bitcoin
Not only that but given recent polls of corporate executives, the current demand level is likely to even spike from here going forward.
2021 is going to be one heck of a year for bitcoin investors and it's likely just getting started.
Stay informed my friends.
-Doc