- Mathematically, since October 2017, there must have been USD 400 million of investment into Bitcoin per month on average
Crypto analyst PlanB has calculated that since October 2017, which was 2.5 years ago, there has been USD 400 million of investment into Bitcoin each month on average. In other words, there is a tremendous amount of Bitcoin investment going on all the time.
To maintain $7000 since Oct 2017, #bitcoin must have had about $400M new cash inflow every month last 2.5 years! (30d x 24h x 6blocks x 12.5btc x $7k assuming all trading is zero sum game)
After the halving, we only need $200M per month to keep $7k level. If $400M stays, then 🚀 pic.twitter.com/d6hYJqxIUr
— PlanB (@100trillionUSD) April 6, 2020
Essentially, in October 2017 the price of Bitcoin was the same as it is now, roughly USD 7,000. Simultaneously, miners have been adding 1,800 new Bitcoins to the total supply every day since October 2017, and theoretically, for the price to stay at USD 7,000, every single one of these Bitcoins needs to be purchased. This means that USD 400 million is being invested in Bitcoin every month, or USD 13 million every day, on average since October 2017.
Further, this reveals how the block halving could cause a major Bitcoin rally. Once the halving comes only USD 200 million per month of investment would be needed to sustain Bitcoin’s price at USD 7,000, so if there continues to be USD 400 million of investment per month, the demand for Bitcoin will far exceed the supply, and Bitcoin will skyrocket.
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