There are very few traders who have never thought of buying Bitcoin, and why won’t they be, because Bitcoin is one of the most profitable cryptocurrencies. Apart from being highly profitable, Bitcoin has several features that make it better than most cryptocurrencies. Bitcoin is a decentralized currency, which means that no government or central bank controls it, which makes it more secure. Apart from that, Bitcoin works on peer-to-peer networking, and it is a very convenient form of payment. This is why many traders are continuously buying Bitcoin, which will face a supply crisis. If you are a beginner at crypto trading, and you have no idea about it, then this article will prove to be helpful for you. This article will talk about supply shock and whether or not Bitcoin is a supply shock.
What Is a Supply Shock, and How Does It Apply to Bitcoin?
Supply shock is an event where the price of a product changes drastically due to the change in the supply. When the supply shock is negative, the supply of the product decreases, and the price increases. When the supply shock is positive, the supply of the product goes down, and the price increases. Many products have witnessed supply shock in the past, and Bitcoin will be one of them. There is a confirmation that Bitcoin is only 21 million in terms of supply, and the supply cannot increase because a code controls the supply of Bitcoin. So, as a result, Bitcoin is going to face a negative supply shock which will impact a lot of traders across the globe.
What on-chain Metrics Have Said About Bitcoin + a Supply Shock
It is not overselling to say that there are some speculations around the price of Bitcoin, which will change because of a supply shock. Traders rely on the output of the On-Chain Metrics, and they want to know what they have to say on this. Their opinion on Bitcoin’s supply shock states that the market will run out of Bitcoin very soon. Since traders already know about the benefits and potential of Bitcoins, we will witness a steady rise in the price of Bitcoins. The market cap of Bitcoin will increase at such a rate that it will surpass the market cap of gold. They also said that Bitcoin’s market cap wouldn’t stop after surpassing gold, and the sky is the limit for Bitcoin price. However, some On-Chain Metrics have speculated that there is no surety about Bitcoin in a supply shock.
So, All in All, Is Bitcoin in a Supply Shock?
It might come as a shock to the traders who do not follow Bitcoins very closely that Bitcoin will be in a supply shock. However, it may take a lot of time for Bitcoin to go in supply shock, but that does not cover the fact that Bitcoin is going down that path. In my personal opinion, if you have purchased Bitcoin in the recent past, then you must hold onto that because the price of Bitcoin is going to increase.
Supply shock was always on the cards, and because there is no way we can increase the supply of Bitcoins, the inevitable will happen soon. While some metrics have suggested that the supply shock might not happen anytime soon, some metrics are sure about it. But, now that you know about supply shock and how it can affect the performance of Bitcoin, I am sure you will make a correct decision about buying or selling Bitcoin. If you still want to make profit from Bitcoin in any market situation then you should find out Bitcoin Evolution platform. It is an automated trading platform that helps you to earn good profit from Bitcoin trading.
Introduction As a global financial hub, Singapore has seen tremendous growth in the …