cryptocurrency

Nothing much from Crypto-Bulls lately… but now… Bitcoin is Up! DOGE is amazing!!! Last chance to get in!! Meanwhile, the “printing press” of Crypto tokens is cranking out new supply while prices are high.

Below is the market cap and year over year change in the supply of Crypto tokens (in Bitcoin terms). You can see the supply is increasing over 35% per year at this point.

Even though most crypto prices are well below their highs still, the overall value of the crypto market isn’t that far from a new high. Why? Supply is increasing so fast even if the price doesn’t change, there is a big increase in the market cap.

Remember – except for Bitcoin – most cryptos are not supply constrained. And remember… that means they aren’t worth the 1s and 0s they are printed on.

That is the number of crypto tokens created over the created over the last 8 years. Yes, One-hundred eight-three trillion, five hundred twenty-two billion, nine hundred sixteen million, five hundred four thousand, five hundred thirty-four.

But you are saying “Hey Chris, DOGE is only worth $0.001 $0.75 $0.38 $0.48 while Bitcoin is worth $44,000 so they aren’t all worth the same.

Well, let’s convert them all into Bitcoin equivalent. Each week I calculate the change in supply for each crypto and multiple it by the ratio of its price to Bitcoin’s price that week. I then compart the increase in Bitcoin equivalent crypto to the change in the Fed Balance Sheet. You know, that terrible, awful, debasing, dollar destroying institution.

The supply of crypto is up almost 500% during this period whereas the supply of dollars is up 140%.

While you can’t make more than 21 million Bitcoins, you can make an unlimited amount of many cryptos – including Etherium and Dogecoin. And of course an unlimited number of currencies.

I expect that cryptocurrencies will be about as value as those baseballs cards I used to collect … along with every other kid my age. It’s simply economics: Unlimited supply = $0 value.