Bitcoin — Demand and Supply

I’m fascinated by the demand / supply equation for bitcoin. There are three main consumers of bitcoin:

• apps
• funds
• exchanges

Some funds, like Grayscale’s GBTC, are required to maintain a certain balance of actual bitcoin to the fund’s AUM. This means that as more people purchase GBTC, the fund needs to purchase actual bitcoin. Currently, GBTC alone purchases on average 1280 bitcoin every DAY. There are only 900 bitcoin created every day. They can make up the difference by purchasing bitcoin already in…