Bitcoin BTC and USD notes – negative interest rates?
How many Bitcoin are there actually? – Even if the maximum number of BTC has undoubtedly been set at 21 million, there is no consensus on the available Bitcoin supply. After all, there are various factors that lead to a reduction in the supply. In this article, we’ll look at Timothy Peterson’s findings.
Peterson describes in a paper why he puts the actual supply of Bitcoin Pro at just 14 million BTC. So let’s take a closer look at his reasons.
Bitcoin offer lower than expected
Our article is based on a paper entitled „There Will Be Never More Than 14 Million Bitcoins“. The report was published by Cane Island Digital Research and can be viewed here .
In essence, it’s about the statement that there will never be more than 14 million BTC. If we look at Coinmarketcap for the Circulating Supply at this point in time, we get a number equal to 18,493,243 BTC.
Timothy Peterson, who contributed to the report, believes in significantly less Bitcoin. Let’s take a closer look at the analysis and its rationale.
Every day there is a net loss of 600 BTC
We see Peterson making the following consideration. Every day, 900 Bitcoin are currently produced through mining. On the other hand, in his opinion, there is a loss of 1500 BTC per day.
Accordingly, there is a net loss of 600 BTC per day since the last halving. As a consequence, the available supply of Bitcoin has to decrease instead of increase. Before that, Peterson is convinced that there was an increase of 300 BTC per day.
Now let’s take a closer look at what reasons Peterson gives for the loss of Bitcoin.
Reasons why the Bitcoin supply is falling
In the report referenced above, we can see the exact reasons listed. There are a number of individual reasons as well as specific examples that Peterson cites.
If you want to take a look at the exact calculation and the associated graphics for the Bitcoin offer, I recommend taking a direct look at the paper.
But now we come to the reasons why the Bitcoin supply is falling:
The loss or destruction of hardware on which your own private keys were stored. This is especially true for early miners whose laptops ended up on the scrap metal or were unfortunately thrown away.
Point 2 is similar to point 1: The loss of private keys. For example, if you own a paper wallet and throw away the corresponding sheet of paper or forget where it was stored, you have bad cards to access your Bitcoin.
The death of the owner. An extreme example of this is the former QuadrigaCX founder.
Sending Bitcoin to a wrong address.
In his report, Peterson names these four primary reasons for the lower Bitcoin supply. Further examples can be found in his report.
Conclusion: what does a reduced offer mean?
To put it briefly: Timothy Peterson assumes that the Bitcoin supply is well below 21 million Bitcoin. In his opinion, there will never be more than 14 million BTC.
Peterson names various reasons from loss to wrong transactions. With the idea of reduced supplies, the pricing and scarcity of the cryptocurrency will of course also change.
Assuming that Peterson is right, investors would have to place a significantly higher value on Bitcoin because the actual supply available is less.