diff --git a/README.md b/README.md index f3730de..fae6bdd 100644 --- a/README.md +++ b/README.md @@ -261,6 +261,36 @@ Kazakhstan in talks on $700 million in cryptocurrency mining projects Find more in [**`Alex_de_Vries.yml` »**](Alex_de_Vries.yml) +### Jemima Kelly, Financial Times Alphaville Journalist + +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! + + § + +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. + + § + +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! + +Find more in [**`Jemima Kelly,_Financial_Times_Alphaville.yml` »**](Jemima_Kelly,_Financial_Times_Alphaville.yml) + + ### Patrick McKenzie, Recovering Japanese Salaryman