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27 July 2021

How The DCA Army Will Drive A $1 Million Bitcoin Price

How The DCA Army Will Drive A $1 Million Bitcoin Price


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In this piece, I will not talk about the why or the how of the Bitcoin charity (that will be a much longer piece coming soon), but will focus on the mechanics of how it is entirely possible to create permanent price growth and stability through a coordinated, mass charitable effort.

It is estimated that there are already over 70 million bitcoin owners, however, if you aren’t buying every day or week, you can consider yourself a speculator?

It is likely that all coins bought by the Army will never see the fiat world again.

I’ve made some other assumptions on loss in the table below, and take a guess that there are just over three million coins lost, with about 15.6 million up for grabs.

My assertion is that, with a well-funded DCA army, in long term equilibrium (i.e., when the entire available balance of bitcoin has been bought and self-custodied by the army), then the price will tend to $700 million per 900 coins per day, or, $777,777.77 (assuming no additional demand).

Based on this logic, you can rationalize that today’s “stable” price of $30,000 as a mere 2.7 million people migrating $10 worth per day, or 0.085% of the global workforce.

Instead of illustrating it with orange circles, I’ll give a hypothetical scenario of what might possibly happen if Bitcoin were to suddenly be hit with $700 million per day, relentlessly, over a one year period.

Price would increase 10% per week over this fortnight, and the army will have stacked over 300,000 BTC, including all 12,600 BTC mined in this period.

With price recovering, deep insiders and exit scammers in the Bitcoin and altcoin worlds will see weeks three and four as potentially the last opportunities to get out before a prolonged bear market, so despite another $1.4 billion of buying power, price still only increases 10% week on week.

The “trading and crypto community” has had billions in wealth evaporate, with the negative media over the following fortnight dropping the price by over 30%, and driving another some 220,000 BTC into the hands of the army.

Week 18 ends with the Army in custody of 1.1 million BTC, with another 450,000 BTC waiting for withdrawal.

With all speculative, weak-handed coins almost completely absorbed, the price bounces back very strongly, gaining 30% week on week in weeks 23 and 24.The old enemies of Bitcoin had now been dispatched, with all of their capital burnt on leveraged shorts.

Over the next 24 weeks, nothing spectacular happens - hence the name “normalization.” Price simply goes up 10% per week, with the Army patiently stacking tens of thousands of coins per week — short sellers, institutions and general onlookers in disbelief.

Even in week 48, when the 10% week-on-week growth has led to a price of $463,000, the DCA army is still absorbing the 900 coin daily supply, plus an extra 600 coins.

Only nine more weeks of this price action would get the price to $1 million, but alas, the DCA army would only be able to provide a floor at $777,777.77 as explained in the introduction of the previous section.

The above is merely illustrating that, with enough time, the entire available supply will eventually go into the hands of the religious zealot auto DCA army based on pure attrition alone!

The result is that in long-term equilibrium, the fiat-denominated price of bitcoin will be the amount of fiat brought to market daily by the army, divided by the miners’ subsidy (mined coins plus fees)

Eventually though, fiat will come into bitcoin in such astronomical quantities, that fiat will cease to exist

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