The famous cryptocurrency analyst “PlanB” explained on Twitter that lThe number of bitcoins available for purchase is much less than you can imagine.
PlanB became known in the cryptocurrency world through its analytical model called Stock-to-Flow (S2F). This model It relates the number of existing bitcoins to the number of new bitcoins that the network creates in each validated transaction block.
His model predicts that Bitcoin (BTC) can reach around $ 100,000 after halving. The event takes place every four years and halves the market entry of new bitcoins. C.See a supply shock in the digital asset.
Bitcoin halving will take place in May this year, and many analysts believe this event may occur cause the asset price to rise rapidly after the year in which new BTCs are reduced.
PlanB noted that halving will have a huge impact on the Bitcoin market. Because demand for the asset is still high, the number of newly issued BTCs, including those available for purchase, is also halved.
According to a recent study, a large part of the 18 million BTC in circulation has already been bought and is tied to long-term investments.
PlanB also notes that mining companies will not produce 1,800 BTC after halving, but will only 900 BTC a day, while the demand for the asset tends to remain as high as it is now:
“We use bitcoin for long-term investments and fiat currencies to buy things. These invested bitcoins remain blocked for years. The amount of Bitcoin available to buyers may be much less than we think. And the 1,800 miner coins available daily will reach 900 in about 18 days“”
When asked what would happen if investors started selling their bitcoins due to the recent economic crisis, he replied:
“”I’m not going to sell for less than $ 100,000. Either I’ll go to zero (which I don’t expect) or I’ll get some (not all) of the chips off the table in a few years if> $ 100,000. My BTC is not available for trading. “
After halving, “PlanB” is optimistic about the Bitcoin price and not alone. Analysts believe that combining the corona virus-driven economic crisis with central bank action could further push the asset into an upward trend.
Bitcoin educator Jimmy Song he said on social media What Bitcoin is a means to change the world and preserve human freedom.
He said that in times like these, centralized governments can fundamentally confiscate everything a citizen has without his or her permission with the legal means available today.
For song, Bitcoin is the only thing that people actually own:
“All physical possessions can be removed by force. All centralized digital possessions can be removed by decree. Bitcoin is unique because no one can take it away from you without your permission. Bitcoin is perhaps the first rare thing in the world that we can say we really own. “