$10 million BTC by 2030? Is Stock to Flow a Reliable Price Model for Bitcoin?
By 2028, demand for bitcoins will significantly exceed supply
Bitcoin will see a dramatic shift in supply and demand this decade.
The number of wallets buying cryptocurrency is constantly growing.
Explosive demand has already led to an increase in the capitalization of the largest stablecoin in the market.
By the end of this decade, the demand for bitcoin is expected to be so high that the supply will hardly be able to cope with it..
Crypto derivatives exchange ZUBR has published a report on the research of the crypto market, according to which the daily production of bitcoin will be significantly lower than the daily demand from buyers.
Based on the performance of analyst firm Chainalysis, ZUBR attempted to design a market demand model for Bitcoin over the next eight years..
By the time of the next halving (which will occur in 2024), small investors will already absorb more than 50% of the supply.
Wallets are growing
In April this year, the number of addresses with the number of bitcoins from 1 to 10 units exceeded 500,000 pieces..
The total cost of such a number of wallets at the beginning of June this year was $ 5 billion.
The number of such addresses has been steadily growing since 2018, and this year the growth of such wallets was + 11%.
Number of bitcoin wallets with a balance of 1+ BTC
ZUBR notes that at such a pace, by 2028 there will be a significant change in supply / demand, when the emission of bitcoin will decrease even more, and retail addresses will continue to absorb more and more offers..
Also, ZUBR expects an increase in the price of bitcoin due to a shortage of supplies, although they do not give specific numbers.
“Although bitcoin is still in its early stages of development compared to gold and stocks, the data demonstrates the loyalty of cryptocurrency advocates to virtual assets as a real accumulator of value, despite the known price volatility,” the report said..
Supply and demand are fundamental components in the formation of the price of an asset.
Gold price hit an all-time high of $ 1,769 per ounce amid extremely high demand despite supply problems.
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The demand model works the same everywhere and the cryptocurrency industry is no exception. Recently, for example, the editorial staff of BeInCrypto wrote that stablecoins – literally translated from English “stable” coins – continue to gain popularity in the digital asset market. With … More USDT joins digital assets with capitalization exceeding $ 10 billion.
The main reason for this explosive growth was the unprecedented demand, which was preceded by the simplified availability of the USDT stablecoin on most blockchain ecosystems like Ethereum and TRON..
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