Jun 18, 2021
BSOV Two-Year Anniversary
During the last two years, over 1% of the total supply has been burned with almost four of twenty-one million mined. BSOV has been hyperinflationary producing millions of units in such a short time. Inflation is a big topic in the news today and the goal for BSOV is to be “deflationary-by-deisgn” acting as a long term “store-of-value”. Bloxy gives statistics on the total float that is accounted for and this chart shows the inflation rate is nowhere near where it was for the past two years.
In the first year, over three million BSOV were accounted for not including the mined untouched BSOV and the amount in the burn wallet. Today 3.98 million have been mined showing a huge drop in the increase of BSOV per year mined. Next year if five million BSOV are mined in total, that would need 2.79K per day which is a lot in my opinion; I don’t see this happening unless the price increases to where there is miner extracted value for a sustained period of time. The goal for BSOV is to be a store-of-value and it has no doubtedly been an uphill battle when millions of units are produced in such a short time. The technology for hashing is analagous to having a dragster racecar ready to do a 1/4 mile in a minute, which is easy to do in seconds. The bottleneck currently on the production of BSOV is based on the ETH txn costs and has been for close to eight months.
The burn wallet continues to increase and currently is over 1% of the total supply. If this trend continues we are looking at .5% of the commodity gone per year. With multiple pairs listed on Uniswap, I think this could easily happen. Arbitrage has shown to benefit everyone who holds BSOV because after each trade the asset gets scarcer. Little by little these trades add up especially if the trades are larger in size. 105K BSOV burned per year is a possibility with sustained movement on Uniswap. I do believe the hyperinflation of BSOV is a thing of the past. The miner extracted value has been $0 for over six months. The future of BSOV depends on people assigning value to the commodity. A couple of months ago the price was over $.20 on Uniswap, then by my estimates over 200K BSOV sold onto the market. At $.07 the fully diluted marketcap is $1.5 million which is a drop in the bucket compared to the world economy. At this valuation theoretically only 1000 people could buy $1500 worth of BSOV. I am bullish on BSOV and will continue to HODL with diamond hands! Congrats to all the holders through the multiple 90% corrections, it has been one wild ride. The future of BSOV depends on the community and I hope you all like this article.
