Could Bitcoin’s Supply Be Too Constrictive?

Not to burst any bubbles? But could Bitcoin be setting people up for a let-down? What if everyone gets excited and wants to buy Bitcoin and suddenly there is a shortage? How will people react to that? Screen shot 2015-05-03 at 8.46.09 PM As good policy planners and analysts know, shortfalls in supply could be a problem so that is why Altcoins exist — at least from what I understand of Bitcoin. It seems like people are trading the Altcoins, like Litecoin, and other Altcoins for Bitcoin, so that the demand of Bitcoin is always scaled down or meted back by the influence of the Altcoins absorbing the gains. Will that always be the case? It remains to be seen whether the Altcoins will continue to absorb the potential gains of Bitcoin, or if it will somehow be able to escape the suckling grasp of the Altcoins, which have an effective pull on how the currency is traded. This creates a sort of “homeostasis” where the price of Bitcoin climbs from new purchases off the fiat supply such as the Euro, Yaun, Yen, and USD. For the most part it seems like China is doing most of the buying — Screen shot 2015-05-03 at 8.44.58 PM But as many reporters, coin collectors, and hobbyists continue to watch Bitcoin and its relationship with Altcoins, speculation about how the markets will develop during these trying times remains a full time job, but for now, it seems like there is some stability in the price of Bitcoin — at least from Aprils stats: During most of April, the median price point remained within the $230 USD range at least from a quick look at the Kitco April Price Charts: Screen shot 2015-05-03 at 8.52.32 PM The average trading volume seems to be between 10-20 million USD per day. Screen shot 2015-05-03 at 8.55.09 PM


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