What impact does Bitcoin Mining have to on the supply of the coin, and how does it reflect on the price per coin on the exhange. I am trying to understand better the Bitcoin Mining instituons and the price movement of Bitcoin relative to Mining and strategies that can be deployed by mainly from an investors standpoint of view. Don't know whether I am thinking about it accurately on how Mining impacts the supply and price of bitcoin.
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What impact does Bitcoin Mining have to on the supply of the coin
I suspect it has very little effect. It increases the current ~19000000 supply by ~6 every ~10 minutes. It is pretty constant and therefore I doubt it has any real effect on market liquidity for example. The long prescribed halvings may have a surprising effect on market commentators moods.
how does it reflect on the price per coin on the exhange
Not at all. The Bitcoin mining process is well understood and has been for over a decade. The markets must long ago have factored this in. Prices are driven largely by "market sentiment", by the fears and hopes of emotional beings. The outbreak of war, the crash of an exchange - these things likely have far far more effect than the boring reliable continuation of a decade-long routine.
I suppose it might be interesting to look at historical data to see if the relatively sudden flight of miners from China had a noticeable effect on exchange rates.
RedGrittyBrick
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