Samson Mow:
"If you take into account the multiplier effect, Bitcoin can rise to 1 million." 🦾
#Bitcoin nostr:npub1excellx58e497gan6fcsdnseujkjm7ym5yp3m4rp0ud4j8ss39js2pn72a #Plebchain https://video.nostr.build/0555c6bdb405dad804af6797b6c174167ea8340e70489e25212fbbe25ef8db1c.mp4
Lets look at the math, hypothetically assuming that exchanges are fair, no paper Bitcoin, and no lost Bitcoin.
$1 Billion purchased and taken off the exchange, divided by 21 million = 47.6, rounding down to that multiplier.
TIMES current exchange price of $42,500 = $2,023,810.
Clearly there are other factors at play.
I don’t think that math is right. It’s more of addition than multiplication.
So for every $1B purchased, it would increase to the Bitcoin on the exchange. So if there were 21m on the exchange, each Bitcoin could go up $$47.60. But if there’s only 1m Bitcoin on exchanges, it goes up $1,000.
So the multiplier is 21m / # of Bitcoin on exchanges. Currently 1.9 m on exchanges equating to a 11.05 multiplier. And that means $1B x 11.05 is added to current “market cap” which there’s different calcs for that.
Free float mkt cap according to coin metrics is currently $565 billion. So a $1B purchase could move the prive 1.95% even though with current market cap it should be dividing that by the multiplier.
If you use the standard maket cap price x 21m it only translates to a 1.33% increase in price.
So as Bitcoin keeps leaving exchanges the multiplier could double or triple in the next couple years due to halfining. Free float market cap could also dwindle while people hodl and lose access to their Bitcoin.
Unit bias would have to be crushed with about a )200-300B Bitcoin rush. The multiplier would skyrocket. FOMO would set in. But where’s that amount of capital coming from? I’m straight outta fiat.
