When Bitcoin or the broader cryptocurrency market experiences a sharp sell-off, it’s common to hear people asking, “Where did all the money go?” In dramatic crashes—such as a 90% decline in market value—the concept of “losing money” can feel confusing and even mystifying. Does the money vanish into thin air? Not quite. Let’s break this […]
Tag: math
All articles tagged “math”:
In the wild world of cryptocurrency investing, few concepts are as misunderstood as unit price. New investors often fixate on the per-token cost, treating it like a simple price tag at a store. But in the complex ecosystem of digital assets, unit price is far more nuanced than it appears. What Exactly is Unit Price? […]
The cryptocurrency space is a hotbed of innovation, speculation, and disruption. While some projects manage to endure through cycles and solidify their place in the ecosystem, countless others fade into obscurity. One recurring debate in the industry centers around the importance of the first-mover advantage: does being an early entrant into the crypto space guarantee […]
Could Bitcoin Pay Off the U.S. National Debt? Here’s What It Would Take… In the face of a towering $36 trillion national debt, the idea of the U.S. paying it off with Bitcoin may sound like a tech investor’s dream—or a wild thought experiment. But let’s take a serious look: if the U.S. government used […]
Have you ever wondered what it would take for the United States to pay off its entire national debt using only its gold reserves? In this post, we’ll walk through the calculations to determine the gold price per ounce required to completely offset the current U.S. debt. Spoiler alert: it’s a much higher price than […]
If you’re new to crypto, you might have heard about Fully Diluted Valuation (FDV) but not fully grasped its significance. It’s one of the most critical metrics to evaluate, yet it’s often overlooked or misunderstood—leading to serious miscalculations about a token’s future potential. Let me break it down for you and show you why a […]
Approximately 6.25 new bitcoins are mined every 10 minutes (see note on the ‘bitcoin halving cycle’ below), which equates to approximately 900 new bitcoins per day. This roughly translates to around 328,500 bitcoins per year. As of October 2023, one bitcoin is worth approximately $28,000, so doing the math: = 328,500 × $28,000 = $9,184,000,000 […]
The size of the entire Bitcoin blockchain grows at a pace of approximately one additional megabyte of data (known as a block) every ten minutes (and has done since it began way back in 2009) — making it (so far) approximately 500GB in size (so half a terabyte, i.e. 0.5TB). The 1MB block size allows […]
Trying to find out how big the entire Bitcoin blockchain (also known as the Bitcoin ‘ledger’) is? The size of the entire Bitcoin blockchain grows at a pace of approximately one additional megabyte (MB) every ten minutes (and has done since it began way back in 2009). As of August 2023 it is a pretty […]
There are about 900 brand new bitcoins mined/created per day. There are about 7 billion people on Earth. So splitting all 900 new bitcoins equally, allocating an equal share of all of these to everyone on Earth each day, would result in 900/7,000,000,000 bitcoins = about 0.00000012857 bitcoins per person. A bitcoin is divisible by […]
Let’s explore Bitcoin priced in gold (all prices as of August 2023). The entire market cap of Bitcoin is currently roughly 570 billion US dollars (i.e. over half a trillion US dollars). At current market prices, one kg of gold is approximately $60,000, giving us one metric tonne of gold having a price of approximately […]
Two incredibly important concepts when making any investment, but especially important when investing in cryptocurrencies (you’ll see why below), are the concepts of ‘asymmetrical odds’ and ‘asymmetrical outcomes’. What does ‘asymmetrical odds’ mean? Asymmetrical odds means a situation in which the probabilities of two events occurring are not equal (not 50%) for each event, i.e. […]
Every ten minutes Bitcoin adds a new block to its blockchain. Every new block is approximately 1MB in size (meaning every ten minutes the entire blockchain grows by approximately 1MB in overall size). Each of these blocks contains on average roughly 2,000 bitcoin transaction, and every new block that is mined carries a reward of […]