By Jim “Pappy” Moore
Bitcoin’s market cap is $365 billion.
Every day through Bitcoin mining operations 900 new Bitcoins are created.
These are either held by those doing the mining or sold by those doing the mining.
Assume that those mining are mostly selling the Bitcoin.
At today’s market rates, the new Bitcoin are being bought at roughly $18,900 each.
If someone or some group of Bitcoin holders wanted to do so, they could buy every newly created Bitcoin at $18,900 each for one full year for just over $6 billion.
Now, wouldn’t doing so be a smart thing to do in order to stop Bitcoin from falling below $18,000 each? Imagine if those 900 new Bitcoin hit the market daily and they only garnered $14,000 each? What would that do to value of the Bitcoin being held by the biggest holders of Bitcoin? Do you see why they would be inclined to protect their Bitcoin value by buying up the new Bitcoin at a price which stopped the erosion of Bitcoin?
I believe this is taking place. I watch the Bitcoin numbers daily. Someone is trying to maintain a floor of $18,000/$19,000. Over 2/3 of Bitcoin have not moved from their owner in over a year. This means the trades are happening among the other 1/3 holders of Bitcoin. It stands to reason that those creating Bitcoin through mining have expenses they must meet, so they convert their pay – the Bitcoin – to cash by selling them. As long as whales (huge owners) buy them up at $19,000 or so each,…
