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Retailers will eat all the freshly printed Bitcoins in 2028

The demand for bitcoin will outstrip supply by 2028

04.Jul.20 10:37 AM
By Shawn Highstraw


Retailers will eat all the freshly printed Bitcoins in 2028
The demand for bitcoin will outstrip supply by 2028. Increasing demand and the decreasing stock due to the coming halves and computational difficulty are the key for this forecast.

The number of daily mined bitcoins will drop below daily demand over the next eight years. Retail investors will already account for 50% of demand after the next halving in 2024.

A halving event is an automatic mechanism that halves the rewards for miners. This keeps the inflation of bitcoin within limits. This means that the new supply of bitcoin that is entering the market is also halving.

It is necessary however that demand continues to increase. According to the platform, the number of retail wallets with face value between 1 and 10 BTC has constantly increased since 2011. Only in five months since 2011 did this number decline.

While assessing Bitcoin's «fair value» price has been a difficult if impossible task to accomplish, with some looking at mining or network usage, in fact retail investors continue to add more Bitcoin.

Should this trend continue, demand will be greater than the new supply in 2028. Extrapolating future demand at this rate indicates a very dramatic shift in 2028 when Bitcoin's supply continues to decline and only retail addresses will eat all the new supply.

In short, we may still have a lot to expect in the coming years. In addition to the growing demand from retail investors, there is also increasing interest from the institutional investors. For example, a recent Fidelity survey found that 36 percent of institutional investors own digital assets. In addition, 80 percent say they find digital assets attractive.

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