Ultraround Money (Originally The Burning Circle): Not All You Need To Study
Picture credits to: https://ultraroundmoney.com/
WARNING:
History and past gains don’t predict future performance.
This article is not financial advice. It’s just a piece of art that flashed on a computer after looking at the Circle, but does no honour to the beauty of it.
For many people it might be best not to join. I’m no authority to tell you why, but there’s a small chance you’ll understand after reading the whole article.
Everyone buys at the price they deserve, the community lets them sell at the price they deserve.
I repeat, this is not for most people.
The journey into the circle does not have to be done alone. Don’t be afraid to ask for help from Circle community members.
Through Fire and Chaos The Circle Emerged
The beginning, the end — merged into one
The motion is set — it can’t be undone
The ultimate burn, is it faster or steady?
Eyes without a face, they weren’t ready
The mysterious 🔵object on the sky appeared a week ago on Friday 9.2.2024.
Ever since then, people have wondered what it is.
Once Circle emerged, some have felt a familiar feeling that is oddly relaxing and a bit mind-disturbing at the same time.
Here are some observations from Farcaster:
If you join the Burning Circle Telegram at https://t.me/BurningCirclePortal, you can find many text and image memes as well as more beautiful circle pictures.
Yet, there is one thing that grabs the attention of the curious-minded:
/study
Why are they saying that?
Prologue: Why Math Rules the Market
Your brains are a thing that want to feel comfy at all times. They pick and embrace whatever concepts that they can recognize from memory and have already accepted.
Time after time, the brains fall for same arguments.
Many crypto devs also rely on markets to want more of the same shit year after year…
(muh world-changing technology-equipped fastest blockchain ever or cute memes)
…and they tell you the exact stories that you want to hear and have been brainwashed with.
If you want to truly learn something in crypto, you have to start looking behind these narratives.
That’s where math comes into play.
And in my opinion, math is the purest science there is.
Quick background story, hang on with me:
I fell in love with math ever since I first saw numbers and started to do algebra.
Soon, I moved into collecting stuff — because what would be more fun than counting what you have?
I collected +5000 pcs of beer caps at the age of 6, selling this collection later for a mere 20 USD.
Then I jumped into collecting Pokemon cards (1st editition, collected full base set). Gave it away once I outgrew that.
I moved onto Magic of Gathering, playing with frens and trying to collect the cards that were used in decks played by pros in The Gathering World Championships.
Many years later, I was just too afraid to pay ‘big buck’ for P9 that were available in my local marketplace.
And, once I pulled the trigger and got hold of my first P9 card, I flipped it for a profit of 250usd within a week.
Not bad for a single trade, but I would have +10x that profit by just holding onto it.
I didn’t recognize these items were hard-capped with a growing demand.
It gets even better…
The Equation of Circle: Scratching the Surface
What does all this have to do with the Burning Circle?
Well, let’s do some simple math:
In all markets, the price of the asset is determined by the balance of supply and demand. Let’s give them following functions:
- Demand Function: Qd=D(p,Y,…)
- Supply Function: Qs=S(p,W,…)
Where:
- Qd is the quantity demanded,
- Qs is the quantity supplied,
- D and S are the demand and supply functions, respectively,
- p represents the price of the Circle,
- Y represents all factors affecting demand
- W represents all factors affecting supply
· Nash Equilibrium Condition: Qd=Qs
· To find the nash equilibrium price for any crypto, you would set the demand function equal to the supply function and solve for p.
Now, let’s see how these equations play out for Bitcoin and Ethereum as an appetizer to understand the underlying math of them before we analyse Circle:
BTC
Bitcoin has a hard capped supply of 21 million coins. If your competition is ‘coins’ or currencies without any caps i.e. unlimited minting function, you’re already light years ahead in the race even though the market might be slow to move in your favour.
People who have understood this and spent a reasonable time studying Bitcoin, are not willing to sell their Bitcoin easily — in fact, the supply of BTC that hasn’t moved in a year hit a record high of 70% in November 2023.
ETH
For Ethereum, the case is a bit more complicated. Ethereum moved into a PoS model from PoW on September 15th 2022 during an event called the Merge. New ETH is issued to validators for each block while the users of the network pay ETH for executing their transactions. A large chunk of these gas payments is burned which reduces the supply.
Conclusion: As long as network usage creates larger ETH burns than new ETH is issued, the supply is decreasing.
We can therefore call Ethereum a conditionally deflatory asset. And if we check the history of burn-issuance since merge on website called Ultrasound.Money, it looks pretty darn good for price increase:
But, there are scenarios ETH might become inflationary. These include but are not limited to L2 chains starting to move from sequencers to validators (becoming L1s), modular blockchains becoming the new standard, or simply users favoring a smoother ‘trading experience’ despite the cons of centralization (I’m talking about Solana here).
Now for our main course:
The 🔥Burning 🔵Circle
$CIRCLE started with supply of 1,000,000 coins. There will be no mints after the emerge event that took place a week ago.
You know what’s better than hard capped supply or a conditionally deflatory supply?
A limit-sequenced deflatory supply.
What it means is simply that the supply is deflatory as long as the asset is traded.
The only way to hard cap the supply again is by stopping all trading.
Not. Going. To happen.
The Burning Circle is the FIRST cryptocurrency with a limit-sequenced deflatory supply.
Let that sink in.
What does this mean?
It’s too early to say what Circle is & what it will become. For me it is a mystery and I can’t keep but wondering and studying it every day.
Hats off for the work gone into building this Dune Dashboard where you can follow the burns:
Thorough analysis of the contract and maths around it would take a thesis or two.
To keep the scope of this content manageable, we’re not diving into it to.
Personal recommendation: Study it yourself & with fellow Circleans.
But please, pretty please — don’t 🔥BURN any midnight oil doing that, you’re better off grasping the beauty of it when you’ve fully rested.
What Is Circle on Top of Dexscreener All Day?
Again, a topic too wide to cover in this score.
All I can say is: /study
Why Are People Bridging over to Base Just for Circle?
You can’t find Circle on other planets, galaxies or chains.
Circle is powered by Base.
What I’ve gained from Circle aka Ultraround Money
🔵Circle has reminded me of the beauty surrounding us everywhere.
The sounds of 🎵432hz music with those perfectly-rounded oscillations on your eardrums.
The round 🌑moon, 🟡sun, trees, tracks made by circling humans and animals.
The 🥛round glass I drink my sea-salted cucumber water with.
The circular motion of your hands in Chi Gong (try it out and feel the circular energy through your body).
The breath flowing, the tennis ball spinning, the pupils in your eyes dilating.
What is Circle?
What the fun of journey it will reveal to us?
There is so much more to 📘study.
Thank you 💙Circle.
If you enjoyed reading this, donations of $Circle are roundly appreciated and can be sent to address 0xD984414eCd63473cAfFb1c97bF71CF61fcAEfD78
(I reserve the right to circle any amount of donations further to those who deserve to make it)
