With 78% of Bitcoin in circulation not for sale, what are the effect

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Bitcoin has been in the news of late and a surge in its value is one reason it may continue staying in the news.

But other development of late is that they have been a shortage of BTC supply between Grayscale and Paypal.

This may not come as a surprise to many following the news of late. Lots of Bitcoin have been bought by investment companies and they don't intend to sell any of them.

Now, it's clear Bitcoin has not only turned from a means of payment but it has been broadened to be a store of wealth. Surprisingly it serves both purposes well in the short run but in a long run, one will have to make way for the other.

Bitcoin is fasting turning to Gold which is limited and also a means of wealth storage. With 78% of the Bitcoin in circulation not for sale, it's only a matter of time before other means of payment will be considered.

Once all Bitcoin in circulation are not for sale again, then the law of diminishing return will set in. The definition of Alfred Marshall on the topic may not be easily comprehended while relating it to the topic above but other definitions will clearly explain them. In the words of Alfred Marshall defines the law of diminishing return as

An increase in the Capital and Labour applied in the cultivation of land causes, in general, less than proportionate increase in the amount of produce raised unless it happens to coincide with an improvement in the art of agriculture.

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To clearly understand this term and easily relate why 78% of Bitcoin in circulation not up for sell is, then the definition of Stigler should be looked into. According to G. Stigler,

As equal increments of one input are added; the inputs of other productive services being held, constant, beyond a certain point the resulting increments of product will decrease.

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What this means is that as more bitcoin is been bought as a store of wealth, the value will keep increasing until all will be bought and stored but the bad news is that the value of Bitcoin will start decreasing once it's all stored up as a store of value.

The reason is simple. It's has become a gold-like commodity but has tough competitors around. While the value for Bitcoin once it gets to a point, it will greatly enrich other alts.

I hope you see the effects of this trend from my rant?
But Bitcoin hasn't hit its all-time high yet, so you can still relax try to accumulate as much as you can.

What do you think the effect of 100% of Bitcoin in circulation just stored as a store of wealth result to?

Your opinion is needed in the comment box.

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