Crypto dealer and YouTuber, Tone Vays, defined that Amazon’s $140 billion CEO could not purchase each Bitcoin (BTC) in circulation.
What would occur if Bezos tried? “He would drive up the value of Bitcoin to the purpose the place he might not afford it,” Vays informed Cointelegraph in a message on April 23.
Why could not Bezos purchase all of the BTC available on the market?
On the day of Vays’ feedback, all of the speculative capital held inside Bitcoin gave the asset a complete market cap close to $137 billion, with every coin priced at roughly $7,500, CoinMarketCap data confirmed.
Within the final 11 years, roughly 18,343,537 BTC have circulated the market. Numerous these cash, nevertheless, sit in numerous wallets and platforms with long term holding in thoughts. Some early adopters even lost unknown quantities of doubtless unrecoverable BTC.
Primarily, solely a certain quantity of BTC is liquid, or instantly tradable, on exchanges and markets. “Bitcoin is a really illiquid asset,” Vays mentioned. If Bezos tried to purchase all out there BTC, everybody would start shopping for up Bitcoin after listening to the information, which might take the asset’s worth even increased, Vays defined.
Folks may even panic?
Persevering with his rationalization, Vays mentioned the state of affairs may also trigger worry available in the market. “If he did obtain the acquisition of a big chunk of Bitcoin to rival Satoshi, and even say 25% of all Bitcoin, he might then trigger some panic available in the market with individuals pondering he may dump any second, crashing the value,” Vays defined.
Vays referenced the same state of affairs seen roughly 40 years in the past. Between 1979 and 1980, the Hunt brothers, W. Herbert and Nelson Bunker, tried to buy all silver available on the market, additionally known as “cornering the market,” an article from Enterprise Insider detailed.
Much like what Vays believes would occur with BTC, the Hunt brothers’ mass shopping for resulted in silver’s market worth surging from $6 to $50 per ounce, Enterprise Insider mentioned.
“The federal government stepped in to close it down,” Vays mentioned of the Hunt’s silver shopping for caper. “I can even see the federal government stepping in if an American tried to nook the market,” Vays mentioned of Bitcoin, noting the asset’s mainstream prevalence.
Philip Salter, Genesis Mining’s head of mining operations, additionally gave his opinion on the same hypothetical situation on April 22.
