Why is Bitcoin worth $1,000,000,000?

It's easy to get hung up on the fact that a single Bitcoin is priced at ~$50k, but the per-coin price is not as interesting as the total market cap (price of all coins in circulation). Bitcoin's market cap at its peak was over one TRILLION dollars. Ethereum is currently sitting around $500 billion. After the top 2 spots, everyone else is sitting around $100 billion or below. Why?

The simple answer is "supply and demand"... There are only so many Bitcoins that exist today and only so many of them are for sale at any given time. There's an automated market maker that facilitates trades between people who have bitcoin and want cash and people coming from the other direction. For Bitcoin, that's basically the end of the story.

For Ethereum (and other general purpose blockchains), if you want to build or run applications, create NFTs (digital art, etc.), or do anything else on the blockchain, you need to have ETH to pay fees. Supply and demand is still a big factor here, but there will always be some demand that comes from people who are already on Ethereum who need to buy more to keep playing (because of fees).

The Koinos mana system allows you to hold Koin and generate mana forever. Then you use that mana to pay the fees without losing any of your Koin. Owning Koin is like owning a farm... you can keep harvesting and reaping the benefits forever. Just don't sell the farm.

This means the people who actually use Koinos won't want to sell much of their Koin and the supply side of the equation will be limited. As demand grows, the price of Koin will follow.

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More tomorrow,

-Luke

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P.S. episode 2 of The Koin Press podcast is live! This week, I talked to Kuixi He (motoengineer) about the value of Koin, the Koinos community, and more! Available wherever you listen to podcasts.

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