On January the 3rd of 2009, Bitcoin's first block was mined and the maximum supply was 21,000,000BTC.
In January 2013 Bitcoin was trading for 12 dollars but by December the cryptocurrency had its first bull run all the way to 1,113 dollars. It later hit lows of 100 dollars in the next year BUT the maximum supply was still 21,000,000BTC.
Without going over the price of Bitcoin throughout the years we can fast-forward to December 2017 to highs of 20,000 dollars and guess what... It still had a maximum supply of 21,000,000BTC.
The only time Bitcoin's maximum supply can go above 21,000,000BTC is if a bug is found to artificially inflate supply to infinity, as has happened before. This, however, is only temporary since the community will ultimately reject this, fix it and fork out of this conundrum.
So why Am I going over this obvious part of recent history?
Here's why:
The CT community as well as most other cryptocurrency community's have become mind-numbing echo chambers pumping out the exact same message over and over. Number go up. Now, I am not trying to convince you that Bitcoin is not programmed to go up but that the market does not care about fundamentals. Markets react emotionally and based on opportunity. The fundamentals have not changed since the Genesis block, what has changed is the sheer volume of market manipulation and shilling.
A perfect example of this is in the Suez Canal crisis. A fair amount of precautionary decisions are being taken globally to react to the possibility of shortages caused by the trade route blockage but the narrative is much worse than the reality of the situation. This creates an opportunity for traders to become bearish because it financially benefits them. The exact same happened, albeit it on a scale magnificently worse on March 12th crash, also known as 'Black Thursday'. Everything from the Stock Market to the Crypto market crashed because of emotions NOT because people thought that the world was genuinely going to end.
FUD may be spread to claim governments will ban Bitcoin as Ray Dalio is claiming.. They may even try to, but it is ultimately impossible to ban code and that will not effect the fundamentals whatsoever. Maximum supply remains 21,000,000BTC.
In my opinion this is why caution needs to be heeded at present in regards to the state of the market. The fundamentals have not changed since Bitcoin was at 4k dollars but the sheer volume of shills pushing the 'Number only goes up' truth is overwhelming. Yes, Bitcoin's price has gone up since that 2018 high but there were couple of brutal years in between.
What do you think about the state of shilling right now?
