Buying 12 Million Bitcoin | What Could Happen?
Edited By
David Kim
A bold question arises in the crypto community: What if someone attempted to purchase 12 million Bitcoin? This scenario, while largely hypothetical, has stirred up conversations about market dynamics and potential consequences in the world of Bitcoin. As of now, it remains unclear how one could realistically orchestrate such a massive acquisition, given the limited supply.
Context: The Supply Issue
Currently, there aren't 12 million Bitcoin available for sale. Many analysts estimate only 2-3 million Bitcoin are actively traded on exchanges. This scarcity leads to speculation about what would happen if a single entity tried to buy a huge portion of these coins.
Key Insights
Liquidity Concerns: Experts highlighted that liquidity is crucial. If someone were to buy this number of coins, they would need significant funds and access to a vast number of holders willing to sell.
Price Surge: Many agree that such a purchase would lead to a dramatic price spike. One comment noted, "Buying that alone would instantly double the price minimum."
Feasibility Factors: Commenters pointed out that no single person could afford such a purchase. One user remarked, "No single person on earth has that much."
Market Reactions
The cryptocurrency market is notoriously unpredictable. The potential to buy a significant amount of Bitcoin raises questions about how many sellers would actually step forward. As one commenter stated, "For one to buy, one has to sell."
"The price of Bitcoin is not predictable for any hypothetical situation." - Anonymous
Issues Surrounding the Purchase
Various users indicated that achieving this acquisition would be near impossible due to several factors:
Long-term Holders: Many Bitcoin holders plan to keep their coins for decades, regardless of the price.
Market Impact: A large purchase would create a price squeeze, pushing prices up rapidly.
Speculative Nature: The mere idea of acquiring so much Bitcoin raises skepticism among community members.
Key Takeaways
🚫 Only 2-3 million Bitcoin may be available on exchanges.
📈 A purchase of that scale could hugely inflate Bitcoin prices, at least temporarily.
💰 No individual could realistically finance this venture without extreme resources.
Counting the Costs of a Hypothetical Buy
Looking ahead, the chances of seeing a major player attempt to buy millions of Bitcoin remain low, primarily due to the hurdles of liquidity. Experts estimate about a 10-15% likelihood of any substantial purchase of this scale happening in the near future. If it were to occur, Bitcoin prices could soar, potentially doubling in value, driven by fear of missing out among buyers. However, the majority of long-term holders likely wouldn’t sell, thus limiting the availability of coins for purchase. This situation echoes the 2008 housing market crash, where a surge in demand overwhelmed limited supply, leading to inflated prices and a sharp decline when reality set in.
A Forgotten Tale from the Gold Rush
Consider the 19th-century California Gold Rush, where countless miners flocked to the state in search of fortune. A few found wealth, yet most faced losses as prices fluctuated wildly based on rumors and speculation. Just like today’s Bitcoin marketplace, the miners didn’t account for the reality that the vast majority of gold was held by a select few. The speculative frenzy often led to inflated prices and market instability. In this parallel, we see that while some will chase the dream of acquisition, others may simply be left with dust and disappointment in hand.