Bitcoin-ETF and Bitcoin Deficit


Running Bitcoin-ETF led to the expected result namely Bitcoin deficiency. According to a study by Grayscale over the past month, demand has increased more than 5-fold - from 40K bitcoins to more than 200K.


Given the fundamental limit on the number of bitcoins, deficiency can become a permanent problem.




This brings us back to comparing Bitcoin and gold, the classic savings asset of the fiat economy.

I guess no one else sees Bitcoin as a currency for everyday payments. It is too slow; to go to the store and buy a liked thing is almost impossible, for this there are younger and faster its brethren.


But the concept of "digital gold" has proved its right to life.


Gold has the same maximum quantity limit, new shipments do not significantly increase the total amount of precious metal. The chance of complete exhaustion of natural resources is large enough.


As with bitcoin, large reserves of gold are held by individual players. Gold has the main "whales" - states with their gold reserves, Bitcoin has large private holders, many of which are anonymous.


A significant difference is that gold has a practical application - both in the jewelry industry and in the technology industries. Bitcoin still has no practical applications and is generally used for investment purposes.


Limiting the number of bitcoins in the future will stimulate the price increase. 

With the further development of the crypto industry, whatever direction it goes, Bitcoin can move into the category of rarities. This will certainly increase investment attractiveness and further stimulate price increases.


The outflow of bitcoins to the ETF sector brings a significant part of the market from the "grey" zone to the controlled trading area. I do not exclude that this was one of the purposes of the ETF launch.


We see that the launch of an ETF in three months has changed the crypto market landscape. Next in line is ETF ETH; and we expect the next tectonic shifts in the crypto industry.


#BitcoinETFBoom #BitcoinDeficiency #DigitalGoldEra #CryptoMarketShift #ETFETHNext


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