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29 sats \ 11 replies \ @Scoresby OP 10h \ parent \ on: Dumping a fork coin doesn't crash its price bitcoin
What portion of bitcoin are economically available?
(In the OP I believe I also address the demand side of things. I don't think a trade changes either supply or demand).
Technically, a trade should change supply and demand to the extent that the parties involved have satisfied their desires. The seller now has less inventory and may not be willing to part with it for the same low price, while the purchaser now has more inventory and may not be willing to add to it at the same price. That's very marginal, though.
At the core, what you're missing is that supply and demand are subjective value concepts. They can be informed by physical realities, but they are rooted in subjective preferences. The supply of bitcoin is not principally about there being 21M. It is fundamentally about how valuable the holders of bitcoin think it is.
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Demand is subjective (who knows why we want what we want). But supply is not rooted in a subjective preference. There are eggs or there are not. There are this many bitcoin or there are not. If there were a different number of bitcoin, I would expect the price per bitcoin to be different (even if the total market cap remained the same).
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Ok, you're just wrong. I don't know what to tell you.
You're talking about "stock" not "supply", which I've already tried to explain.
Supply and demand are about willingness to do things at different price points. Willingness is based in subjective value. That's how prices are formed.
Since we've arrived at the root of the confusion, we can call it good, unless you have a new point to raise.
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Fair enough. For my own sanity would you agree or disagree with the following statement:
Supply is the level of demand.
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I disagree with that statement.
Here are the definitions of "supply" and "demand"
- Supply: the quantities of a good that sellers will produce at various prices ("produce" just means "make available for exchange", not "create")
- Demand: the quantities of a good that consumers will buy at various prices (similarly, "consumers" can be buying to hold, there's not requirement that they destroy the good)
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Yes, our disagreement is clearly based on what supply is.
It seems to me that
"willingness to make available for exchange at various prices"
=
"Willingness to buy at certain prices"
Your definitions of supply and demand are not different from each other.
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They're almost entirely unrelated to each other. Why do you think they're the same?
If I'm willing to sell one of my chairs for 5k sats that doesn't tell you anything about what I'd pay for a similar chair. Other than, that I wouldn't pay as much as that.
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I was quoting your definitions.
If supply is the amount people "will make available for exchange at various prices" and demand is the amount people "will buy at various prices", you are saying they are the same thing.
Both of these are expressions of demand. A seller demands their chair as much as they offer to sell it for. Otherwise they would sell it for less. Making a chair available on the market for 5k sats is saying I would pay 5k sats for this chair. If you only would pay 4k sats for the chair, why not sell it for that? When you offer a thing for sale, your saying this is how much it is worth to me. If you want it, you have to give me that much.
If supply is the amount people "will make available for exchange at various prices" and demand is the amount people "will buy at various prices", you are saying they are the same thing.