Subnostr

⚡️💯🎯 Historically, Bitcoin's price has tended to correlate with its production cost. When the cost of mining approaches or exceeds the market price, miners might reduce supply, potentially leading to a decrease in available coins. This scarcity has historically contributed to upward price movements. For instance, during the 2018 bear market, Bitcoin approached its production cost, and subsequently, in 2020, its price surged, indicating a potential relationship between these factors.

Act accordingly!!!!

💯🎯🫂🧡⚡️stack #sats and #studybitcoin #btc ⚡️💜🧡⚡️💯🎯🫂

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Discussion

zxcv 2y ago

Wut.

How could miners reduce supply? The supply going to miners is steady regardless of their efforts. Only halvening and transaction fees influence new supply - miners don’t have levers on those parameters.

MUHTEŞEM 2y ago

When they keep what they mined….

zxcv 2y ago

Yeah. Market forces force them to sell though. Power bill, equipment loans, rent on the space, etc. 🤔

Miners selling does have a huge influence on price imo. It’s the reason for the price spike. 👍