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What does the Bitcoin price have to do with Certurium?

We all know that there are 21m Bitcoins right? Well, just in case you didn’t, take it from me that there is a maximum of 21 million Bitcoins, which will ever be mined. That’s how it was programmed, the idea being to introduce scarcity.

 

As we know, markets work on supply and demand, so let’s say there is more supply than demand for Bitcoin – then the price will be lower because no one wants it. But, if there is a lot more demand than supply the price will be higher. Of course, that means supply must be limited and as we now know, 21m is the limit.

 

Many of the price predictions, including the famous stock-to-flow model from Plan B, are based on this limit. But what they are not taking into account is the fact that many millions of Bitcoin have already been lost. If someone dies and takes their wallet key with them, then there is literally no way of getting that Bitcoin back.

 

Also, if people hold Bitcoin, then it is not part of the available supply and many, many people are simply holding.

 

This means that many of the estimates of BTC price are going to have to be corrected for the difference between potential maximum supply and actual maximum supply – supply will go down, the price will go up.

 

Michael Saylor points this out in this Tweet: (19) Michael Saylor⚡️ on Twitter: “Bitfarms $BITF deposited 96% of their BTC production into custody this year rather than sell it on the open market. If other publicly traded miners do the same, #Bitcoin stock to flow is going to infinity. Then it is going negative. This is not factored into anyone’s model.” / Twitter

 

So what does this have to do with Certurium?

 

Well, given that CRT is based on the Bitcoin core code and works in essentially the same way but with some tweaks to make it less volatile,  this means that in all likelihood, once Bitcoin demand far outstrips supply, there will be demand for other digital assets that are capable of providing Bitcoin functionality – like Certurium.

 

Just a thought, which some people might find interesting. Of course, we will see how it goes in the future. CRT enthusiasts are all about the long term.

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