A recent analysis of supply and demand on the cryptocurrency market suggests that the increase in the price of Bitcoin will cease not because of a lack of buyers, but because of the oversupply.
According to the analyst, the excess supply will be triggered by new ways to trade bitcoin and holding hardforce.
Conclusions are made on the basis of the analysis of the dot-com bubble in the late 1990-ies, when any company with “.com” in its title instantly became incredibly popular in the market. Nonetheless, the end of the dot-com bubble came when a huge number of stock companies “.com” flooded the market. Some time the market has absorbed them, but in the end only the strongest survived.
Where is the offer?
One of the most important features of Bitcoin is its limited supply. Ask anyone, even someone whose knowledge of bitcoin is minimal, and he will tell you that the maximum number of bitcoins that will ever exist – 21 million. So where do we get excess supply?
First, hardforce have now created a new BTC derived cryptocurrency. For example, hardwork Bitcoin Cash created a brand new Bitcoin with a market capitalization of $26 billion. whatever your policy with regard to BCH, the reality is that supply has increased. The forks of Bitcoin Bitcoin Gold and Diamond did the same thing.
The reality is that selling Bitcoin derivatives can reduce the amount of investment in original and Deplete the pool of investors. According to the analysis:
“…because of the ways of investing in cryptocurrency is becoming more flow, raise the price of Bitcoin will certainly retreat and, as always, much faster than expected.”