The price increase effect from the reduction in circulated volume can easily be estimated using the economic principles of demand and supply. Also, the continuous reduction in the circulated volume is cumulative. The respective increase in price can be calculated as below.
The following graph is the result of simulating the effects of Inverse Mining, which shows the price changes over a period of two and half years. The graph is premised on the assumption that a proportion of the daily circulated volume is traded, resulting in a lockup. Even if other external factors are all ignored, the mere fact that the circulated volume is reduced results in a steep increase in price. The effects of Inverse Mining become exponentially pronounced as time goes on.
