**Warning**: I am rounding for simplicity, so the numbers will not be perfectly accurate. This is not investment advice, just analysis of underlying fundamentals of the market.
What is Issuance Rate in crypto? It’s the rate at which new crypto comes into existence and enters the market. This factor is **EXTREMLY** and I mean **EXTREMLY** important to the price/value of the currency as well as the ability for the currency to rise in value. Bitcoin was not simply the first crypto. It was the first fiat currency with scarcity. It has a fixed limit of **21,000,000.** The only way this would ever change is if the developers changed it, but this highly unlikely since it was designed this way from the beginning.
So if you have **21,000,000** of something, what determines price? Demand. duh. If there was 0 demand, the price would be 0. If there was infinite demand, the price would be infinity and the item would be unobtainable. The problem is **21,000,000** bitcoins don’t exist right now. The current supply of bitcoin is roughly **18,700,000**. The rest of the currency comes into existence as blocks are mined. This is what we call the issuance rate. What is the 24 hour issuance rate of bitcoin right now? Roughly **1200** bitcoin. All of these figures can be looked up very easily on sites like [bitinfocharts](https://bitinfocharts.com/bitcoin/), [coingecko](https://www.coingecko.com/en/coins/bitcoin) or [coinmarketcap](https://coinmarketcap.com/currencies/bitcoin/).
So, for a beginner, you know bitcoin is valuable, but you have no idea why. It actually can be explained by some really simple math. We can deduce from the stats that **1200** bitcoin come into existence every day. We also know it takes energy to create the bitcoins from mining. We can also assume that the majority of those **1200** are being sold every day so the miners can make a profit. This obviously can be variable, but probably won’t be very far from the truth. **1200** bitcoins are currently valued at **1200 x $55,000 = $66,000,000**. This tells us that if no one sold any of the **18,700,000** supply that already exist of bitcoin, bitcoin would need **$66,000,000** of daily investments to maintain its price of **$55,000**. This is called creating scarcity. Scarcity is one of the main reason why bitcoin has not been dethroned. In 3 years at the next bitcoin halving, only **600** btc will be created each day and you’d only need **$33,000,000** in daily investments to maintain a price of **$55,000.** This is why the price of bitcoin typically has a huge jump every 4 years along with increased demand and failing governments.
Now we can do these same calculations with some of our favorite currencies. We can also estimate what future prices might be based on demand increases for crypto.
* **Current Investments Needed to maintain price of the follow crypto**
Bitcoin – 1200 x $55,000 = **$66,000,000**
Ethereum – 20000 x $3300 = **$66,000,000**
Doge – 14,000,000 x $0.40 = **$5,600,000**
Nano – 0 x $10.00 = **$0**
Banano – 0 x $0.03 = **$0**
* **Investments needed to maintain crypto‘s at higher prices**
Bitcoin – 1200 x $100,000 = **$120,000,000**
Ethereum – 20000 x $7000 = **$140,000,000**
Doge – 14,000,000 x $10.00 = **$140,000,000**
Doge – 14,000,000 x $1.00 = **$14,000,000**
* **Investments needed to maintain crypto‘s at lower prices**
Bitcoin – 1200 x $30,000 = **$36,000,000**
Ethereum – 20000 x $300 = **$6,000,000**
Doge – 14,000,000 x $0.05 = **$700,000**
**So why is Ethereum exploding in price right now?**
Right now with ethereum people are doing what is called “buying the rumor”. With the onset of [Ethereum 2.0](https://docs.ethhub.io/ethereum-roadmap/ethereum-2.0/eth-2.0-economics/), the issuance rate will go from 3.0% to 0.5%. Then in July when [EIP-1559](https://bravenewcoin.com/insights/ethereum-news) goes into effect, a base fee will be implemented on each transaction. All base fees will be burnt, or destroyed. Effectively, this theoretically make Ethereum‘s new issuance rate in july, **ZERO**. Thats right, the burn rate combined with the low issuance rate, should effectively make Ethereum deflationary. Ethereum previously was akin to doge and had an infinite supply, making it unattractive to serious investors and Bitcoin Hodlers.
**Why did I throw in nano/banano?**
All of the crypto for banano/nano has already been issued. It’s price is purely determined by supply/demand and issuance rate has no impact on it’s price.
**Why did I not include other crypto?**
Simple, I don’t know enough about the issuance rate of other cryptos and have not researched them well enough. Feel free to comment with your favorite crypto‘s issuance rate. I would not place any significant investment on any crypto I do not understand the issuance rate of unless I believe it’s underlying technology will have demand for it at some point in the future. I looked for a while for ADA and XRP but I couldn’t find any. It seems like BNB is doing so many burns its hard to tell. These 3 have a max supply but I couldn’t find any data on issuance.
So if you think demand for your crypto could go down then you sell. However, if you think demand for your crypto could go up you buy. Also, eth/bnb seem to be the best crypto investments for the moment based on issuance properties imo.
More info: [Money Creation on Wikipedia](https://en.wikipedia.org/wiki/Money_creation)
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