ZUBR

Assessing Bitcoin Physical Demand, Market Dynamics and the Role of Leveraged Products

3 June, 2020

This year saw Bitcoin enter its next reward era which means that new market supply has been cut in half. With 90% of all Bitcoins already mined, the remaining supply is estimated to take nearly 120 years to come to market highlighting just how scarce the cryptocurrency really is. Liquidity is likely to be burdened by derivative exchanges that can fill market demand gaps as physical Bitcoins become harder to come by. Recent market activity following coronavirus supply chain interruptions with gold can give a glimpse of what potential scenarios might play out. Zubr looks at the supply dynamics, retail and institutional demand, and how derivatives and Bitcoin could face contango during times of market stress as the cryptocurrency looks to displace gold as the global store-of-value.

Key Takeways

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Gold production: Is it really scare when new market supply keeps increasing?

Meanwhile, gold demand keeps declining Year-on-Year further increasing the supply/demand gap

Bitcoin Derivative Volumes Break Past $500bn in May-2020 For The First Time

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