New calculation surprised: Bitcoin's one-year supply can be purchased with only 1 percent of the aid checks distributed by the US to its citizens
Only 1 percent of the two aid checks sent to the USA in 2020 may be sufficient to raise the price of Bitcoin (BTC).
According to the calculations made on Twitter this week, the new Bitcoin supply to be created in 2020 can be purchased with less than 1 percent of the money the U.S. distributes for aid.
More helicopter cash for BTC?
Matthew Kaye, partner of conservation fund Blockchead Capital, said on May 20, this year the average price of BTC / USD will be $ 10,000.
Miners will create 328,500 BTC this year, and the value of this new supply will reach $ 3,285 billion at an average price of $ 10,000. According to the latest comments of Treasury Minister Steven Mnuchin, the total value of aid checks reaches $ 478 billion.
That is, only 0.68 percent of the aid money is required to keep the Bitcoin price in place and buy the new supply.
The equation is aided by Bitcoin’s halving earlier this month, which cut the number of new coins released per block by 50% and inflation to 1.8%.
Kaye also stated that the USA does not expect them to buy this amount of Bitcoin with their help money. On the other hand, stock markets recorded an increase in purchases after the first checks were distributed.
Kaye summed up as follows:
I do not expect 1 percent of buyers to buy Bitcoin. I am depicting a situation in which only the increasing M2 entering the real economy will raise asset prices.
US M2 money supply up 18 percent
Increasing M2 supply, Cointelegraph Markets analyst filbfilb.
Sharing tables with its subscribers on the Telegram channel on Tuesday, filbfilb said that the M2 supply has increased 18 percent since October last year.
On the other hand, Bitcoin miners started selling less overall. PlanB, the creator of the S2FX BTC price model, said this means "stock-flow is in action".