Replying to Avatar Brisket

It's an assumption that new capital inflows have a 3x multiplier on the market cap.

For example, if another $540b (current market cap) of capital sought a home in bitcoin, bitcoin's unit price would 4x & not merely double.

It's a conservative number & based on new capital entering slowly. If there's a rush on bitcoin, it's likely the multiplier is much higher (at least until price 'corrects').
Avatar
LukeMikic21 2y ago

Exactly!

Except it’s not an assumption, it’s the mathematical reality of a finite scarce asset, becoming infinitely more scarce.

This chart shows that the average multiplier for BTC has was 2.6X over the past 5 years.

I explain more in this video, where I run the numbers on multiple hypothetical scenarios. https://m.youtube.com/watch?v=vaVUC2Kq-sE

Reply to this note

Please Login to reply.

Discussion

Avatar
Brisket 2y ago

There's an assumption that what has happened in the past will also happen in the future.

As more people understand Bitcoin better, the ability to meet new demand from existing supply is hampered.

I would expect that the multiplier effect only increases with time & bitcoin adoption.

∞ / 21M

Avatar
LukeMikic21 2y ago

Agreed! That was the argument I made in this video. https://youtu.be/vaVUC2Kq-sE