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# Jemima Kelly, Financial Times Alphaville | ||
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- quote: | | ||
The idea that you can get out of your bitcoin position at any time and the market | ||
will stay intact is frankly a nonsense. And that's why the bitcoin religion's "HODL" mantra | ||
is so important to be upheld, of course. | ||
Because if people start to sell, bad things might happen! | ||
date: 2021-01-07 | ||
source: https://www.ft.com/content/af686b47-dbb8-426c-b530-27898891bd16 | ||
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It is estimated that about 20 per cent of bitcoins have been lost in various ways, | ||
never to be recovered. Then there are the so-called "whales" that hold most of the bitcoin, | ||
whose dominance of the market has risen in recent months. The top 2.8 per cent of bitcoin addresses | ||
now control 95 per cent of the supply (including many that haven't moved any bitcoin for the past half-decade), | ||
and more than 63 per cent of the bitcoin supply hasn't been moved for the past year, according to recent estimates. | ||
What all this means is that real liquidity - the actual available supply of bitcoin - is very low indeed. | ||
date: 2021-01-07 | ||
source: https://www.ft.com/content/af686b47-dbb8-426c-b530-27898891bd16 | ||
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What we call the "bitcoin price" is in fact only the price of the very small number of bitcoins | ||
that wash around the retail market, and doesn't represent the price that 18.6m bitcoins | ||
would actually be worth, even if they were all actually available. | ||
So the "market cap" is in this way nonsense multiplied. You times two things together | ||
that don't reflect what they claim to - the "circulating supply" and the "price" - and voilà! | ||
date: 2021-01-07 | ||
source: https://www.ft.com/content/af686b47-dbb8-426c-b530-27898891bd16 |