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RE: Understanding Crypto’s Real Value – An alternative view!

in #introduceyourself6 years ago

The market cap is indeed limited. There are a finite number of bitcoins and any other crypto that can be produced. For bitcoin it is 21 million BTC. That's it and bitcoin is estimated to reach that around 2110, a very shrewd form of monetary policy to prevent inflation. So that is the limit. Compare that to the Swiss Franc's current money supply of almost 1 trillion. If your argument is that cryptos can continue to be created, sure until people find a solution for their needs and there will always be those more in demand than other. Think how many currencies in the world today. Equilibrium is an economics term and describes the point or optimum where demand and supply cross and are thus equal i.e where the quantity produced is consumed at a particular price exactly as any other good. Or from study.com "Definition of Market Equilibrium. Market equilibrium is a market state where the supply in the market is equal to the demand in the market. The equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market." I hope this answers your questions. For your reference: https://en.wikipedia.org/wiki/Economic_equilibrium and https://en.wikipedia.org/wiki/Bitcoin. I also notice that you yourself posted a cointelegraph article about 80% of bitcoins already having been mined. https://steemit.com/bitcoin/@manfredkurtauer/nearly-80-of-all-bitcoins-are-already-mined