So we all know the future supply of Bitcoin will be cut in half in 2020. From my knowledge of economics, this will cause supply to become more inelastic. Now this doesn’t necessarily mean the price will go up because you aren’t shifting the supply curve in one direction or the other. You are just changing the slope of the supply curve.
The interesting situation is when a shift in the demand takes place. In my opinion, as we reach the upcoming recession in the U.S. there will be a shift in the demand to the right as more people will want to put their money into assets such as gold and possibly bitcoin. Now if the supply of bitcoin is more inelastic at that point, this will cause a huge price increase!
Now obviously this is a pretty simplistic idea and there are so many other variables to consider, but from this point alone I believe that the price of bitcoin will be much higher than where we are today. Let me know what you all think!
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