Economics 101 Supply & Demand Curve
The #supply&demand curve succinctly elucidates Bitcoin's long-term price movements. With a capped supply of 21 million coins and a steadily increasing demand, scarcity becomes a fundamental driver of value.
Unlike fiat currencies subject to arbitrary inflation, Bitcoin's fixed supply ensures its scarcity over time. As demand surges, particularly in the face of growing institutional adoption and mainstream acceptance, prices tend to rise.
This dynamic equilibrium, underpinned by immutable scarcity, positions Bitcoin as a deflationary asset, making it a compelling long-term investment hedge against traditional inflationary pressures.