The Future Wyoming Senator has praised Bitcoin on ABC as a great store of money due to its finite supply. The senator loved how limited the coin was so much that she declared that it could be a good reserve currency better than the one the USA uses.
Another factor limiting the coin is that it uses up a lot of energy to the point where BTC miners have to relocate when electricity charges go up in China. People are also incurring more costs from exchanges as BTC rises in price.
Regardless of Bitcoins’ many flaws, the price continues to soar as more people start to take BTC seriously. The main reason Bitcoins’ price can continue to rise is because of its finite supply.
The current price trend of Bitcoin
At the time of writing, 21:32 GMT, BTC was at the price of $19.203, a price way higher than most cryptocurrencies. Peeking at the graph shows how Bitcoin over the year 2020 has demonstrated bullish momentum indicated by the Moving Average Convergence Divergence (MACD), which is mostly green.
The candles have moved in an upward direction, showing bullish activity with minimal velocity. Due to its finite supply and increasing demand, the coin is always outperforming itself.
At a glance, BTC is often operating in the upper price expectation area of the Bollinger Bands.
The closest currency to BTC is Ethereum, at $599. Bitcoins price has been 12 years in the making, but it’s also due to its finite supply.
Why is Bitcoin finite
There will only ever be 21 million BTC. Bitcoins are brought into the BTC supply, on average, one block every ten minutes. The amount of BTC blocks released every four years is reduced by 50%, meaning year by year, the currency is etching closer to non-existence, making it almost as valuable as gold.
In total, only 21 million BTC can be mined unless the BTC protocol changes. BTC protocol can unlock more Bitcoins, but it is unlikely that anyone would want to change the power of Bitcoins’ finite supply.
Over 18.5 million BTC has been mined within ten years already. We are in the final stages of BTC. How long it will take before BTC is wholly exhausted will depend on how often miners can be rewarded with new blocks.
As the price continues to rise for BTC, so will the time it takes for people to adopt a coin, as it means they will need to save up more money to purchase one whole coin.
Bitcoins’ finite supply makes it so attractive as a coin, and it is what has sparked the emergence of Central Bank Digital Coins as banks look to try and keep up.