Following the happenings of April 1st, when the popular cryptocurrency was found to have more than 90 percent of its supply in circulation, it is expected that the price of Bitcoin (BTC) would rise significantly in the next months.
While it is doubtful that the Bitcoin community will see the creation of 21 million mined coins in the foreseeable future, history has proven significant price fluctuations have occurred when additional tokens were added to the cryptocurrency’s circulation.
The law of supply and demand plays a significant influence in this situation. Now that wallet users own more than $19 million of the $21 million total Bitcoin quantity, the Bitcoin supply will become more limited. Due to a limited supply, overbought coins are in greater demand and command higher prices as a result.
As the fear of missing out (FOMO) intensifies during this time, the value of Bitcoin assets will rise as more individuals rush to purchase Bitcoin before the supply runs out, increasing the value of Bitcoin assets.
There will never be more than 21 million Bitcoins in circulation, which is significant. It is recognised that Bitcoin was designed as a deflationary asset, in opposition to fiat currency, despite the fact that nothing is known about the pseudonymous Bitcoin developer Satoshi Nakamoto. Bitcoin’s hard limit of 21 million units makes it a good hedge against inflation.
As a result of this trait, Bitcoiners urge for the broader public to move over to the cryptographic currency. Lark Davis, for example, recently revealed information on the recent surge in euro zone inflation in March, which reached a new high of 7.5 percent.
Davis said that inflation surges are “happening everywhere,” and he then suggested that individuals can just “purchase Bitcoin.”
When this article was written, Bitcoin was priced at over $45 thousand dollars and had a trading volume of more than $23 billion dollars on the previous day.