In summary 16% inflation.
I thought it was even higher than that.
But yeah its really high and will be dragging down the price until they switch to PoS.
Not necessary . It depends on who is getting the inflation supply .
If people with deep pockets are getting it , they wouldn't dump it , rather they will use their enormous wealth to sustain the price and wait for a bull market to pump it .
That's why Bitcoin isn't crashing like what was predicted by Stan a year ago with POW , because major mining operations are exactly deep pockets .
The more centralized mining industry is , the more helpful to the price it will be . On the other hand , if anyone with a computer can get their hands on some coins easily , then high inflation
is surely harmful to the price .
There's no evidence miners are hoarding coins to my knowledge but rather selling them to meet expenses.
Bitcoin declined consistently for a year and a half after the bull market. This indicates new coins are being sold not held.
The inflation a coin can support depends on the average level of net new demand in weak to neutral market conditions imo.
For Bitcoin this seems to be about the $230 level.
For BTS there is a lot of new shares being released to those who didn't support things like the merger. So you have consistent selling pressure but very little new demand, so it can go very low unless BTS 2.0 comes out and new users and investors are attracted.
Miners are not Mining operations .
I know some of them quite well .
In fact , some of them have formed an alliance to sustain the price . And they often avoid selling it on the market .(from what i have known , some people from Europe often buy Bitcoin from a major mining operation in China outside the online market . )
Also , big time mining operations do not need to constantly sell coins to pay basic expense . They were rich in the first place . Also , they have absurdly cheap electricity . While some of you might think "poor miners , they need to sell coins to pay enormous cost " , well , that's just the small time miners who don't have scale advantage . Industrial mining operations on the other hand , are far more lucrative than normal manufacturing industry .
As for the drop after the bull market , that's bound to happen one way or another even without further inflation . Every stock does that after a full 5 wave cycle .
What matters is , if there will be another new circle .
Also , there is NO real "demand" on a highly speculative market . Everybody follows trend . Once the trend comes , the market would convince you that "you need this thing !!!! or you'll be the sucker !!!" then ...there comes the demand . Because in any speculative market , your expectation is based on what you think other people's expectations are .
Also , when the up trend vanished , everybody who felt so strong to "demand" it would be gone .