Bitcoiners Wait For Saylor Bot
Microstrategy closed its bitcoin offering today, raising $488 million after accounting for costs according to a statement.
If buying begins now, then saylorbot is expected to purchase $2,000 worth of bitcoin a second with it estimated to last ten days.
They will do so through Coinbase Prime, the big boys section that has algo wizzing to basically market buy on Gdax (Coinbase Pro).
That’s if they follow the same approach as before which Saylor himself has previously revealed in interviews.
Bitcoiners will probably spot the bot once it starts operating, giving us a new screenshot like the one to the right during December.
That was the first bitcoin purchase by Microstrategy, with a second round in February and now a third.
Between these rounds they have bought in a dollar cost average (dca) method about $10 million worth of bitcoin now and then, with the company allocating a portion of their profits to digital gold.
That has paid off handsomely so far overall, with it to be seen now just how much of an effect this new bot buying pressure will have on price.
In a simplistic comparison of half a billion v a $760 billion market cap, you’d think it would have a little effect. However this is a very one dimensional analysis as this is one of those rare times where the market knows of the purchase before hand.
As such, holders would expect at least some price rise, and so may wait for the buying to finish before considering selling, unless obviously they so broke or there’s some necessity.
In addition market cap is price x coins in circulation. Price, on the other hand is supply and demand for the coins on the market which are usually about one million bitcoins a year.
We could here try and get it to an average for a day, 2739 bitcoins (110 million), times ten days. So Saylor alone, and obviously this is a very rough estimate and may even be completely wrong, may account for about half of the needed demand to cover market supply.
Since this is new demand, then in the abstract price should rise by 50%, of $40,000 being $20,000, so to $60,000 presuming everything else remains constant.
To be conservative we can discount half of it for lulz and say price should get to maybe $50,000, but obviously we don’t know what it will do until it does do it as there are far too many other moving factors which can change the supply and demand equation, but the main point is that half a billion is no joke, especially over such a fairly short period of ten days with a constant buying pressure of $2,000 a second.
Back to the list