Retail Investors Steady in Physical Bitcoin Snatch-Up

This year saw Bitcoin enter its next reward era. This means that the new market supply rate has been cut in half to only 6.25 Bitcoins every block — an event that occurs approximately every 10 minutes. With 90% of all Bitcoins already mined, the remaining supply is estimated to take nearly 120 years to come to market. This figure — the remaining 10% taking another 120 years — shows just how scarce the cryptocurrency already.

Liquidity is likely to be burdened by derivatives that can fill market demand gaps as physical Bitcoins become harder to come by. And most recent market activity due to the coronavirus that interrupted the supply chain of gold can give a glimpse of what potential scenarios might play out in the future for Bitcoin.

Zubr looks at the supply dynamics, retail and institutional demand of the world’s largest cryptocurrency, and how derivatives and spot trading could face contango during times of market stress as Bitcoin looks to displace gold as the global store-of-value.

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