The Bitcoin black hole has absorbed $1 trillion of monetary energy in only 12 years. As the legacy financial system nears the event horizon, BTC’s gravitational pull grows stronger. Quadrillions of dollars of monetary energy will soon be compressed into 21 million bitcoin — the singularity. What comes out on the other side of the wormhole, nobody knows.
Many Bitcoiners believe this will take place, but have you actually run the numbers? It is impossible to know exactly how this will unfold, but by running some of the numbers we can get a better understanding of how dramatic this event will be. The math in this article is truly mind boggling.
To begin, it is important to understand that over 88 percent of all bitcoin that will ever exist have already been put out into supply. Through subsidy halvings, the flow of new coins being introduced into circulation via mining is cut in half every four years. The most recent supply halving was in May 2020, and will occur again sometime in 2024. With that being said, those roughly 18.6 million coins (that have already been created) have absorbed $1 trillion of monetary energy. Many of these coins have either been lost or moved into cold storage, never to resurface. As demand for bitcoin exponentially increases, the entire legacy financial system will need to be condensed into the remainder of coins that are available to be bought.
According to Glassnode, there are roughly 2.4 million coins currently up for sale on exchanges.
The entire global financial system will need to be condensed into those coins, in addition to the final 2.4 million coins to be created over time between now and the year 2140.
There is roughly $2.1 quadrillion of monetary energy in the world, a number that is drastically increasing. If hyperbitcoinization were to occur right now, this $2.1 quadrillion must be compressed into the 2.4 million bitcoin left on exchanges. Quadrillions are massive numbers that no one can reasonably wrap their head…