Post
Topic
Board Speculation
Re: More than $1.5 million must move into BTC every day, just to sustain its price
by
2_Thumbs_Up
on 19/08/2014, 21:23:13 UTC
I don't sell any coin I mine either. Most miners I know hold their coins. This argument is getting old.
In case you hadnt noticed, hobby mining is dying. Its the big mining farms that dominate nowadays.
Point is fairly moot for other reasons though, those farms a most likely not selling on open market.
But those buying from the mining farms are buying from them instead of buying elsewhere, such as an exchange. So the downward pressure on the price is essentially the same regardless of where they sell.

But still, lets do some math.

1.5 million USD/day*365 days= 547.5 million USD/year.

According to Coindesk the 2014 YTD Venture Capital investments in Bitcoin companies is 159 million USD. If we assume the VC investements will continue at the same rate this year that will add up to be roughly 250 million USD this year by the end of 2014.

So in other words, in order for BTC to sustain its price, we need about twice the amount of money going directly into Bitcoin, as we have VC capital going into Bitcoin companies. I don't think that's very unreasonable, especially not considering some of the VC funders probably want a Bitcoin position as well.