Replying to 424ad77e...

That framing assumes that illiquidity will have the same effect as in traditional monatery assets, ie: dry up potential market activity.

Due to the absolute scarcity, demand is expressed only through price. We've never had an asset like that and believing the market will respond the same as it always has could prove unwise.
Avatar
Platinum Bear 2y ago

I agree. My thought process is everyone has a price in which they are willing to sell BTC to buy a home, land, etc. Once, they sell. They may never have the opportunity to buy back in at that price or even at a premium. Institutional banks in the US are still holding #gold bars in their vaults since that gold arrived during WWII. When institutions hold, they are for generations. They hold centuries at a time. That’s why you have #gold being produced at 2% a year. So that no one institution or institutions can acquire all #gold. However, with a finite amount 5 or 10 institutions could acquire all BTC in a century time.

Reply to this note

Please Login to reply.

Discussion

42
424ad77e... 2y ago

Yeah, but I'd venture it'll be more like a few centuries.

There'll be a few families that manage to hold on and take a place among the world financial elite. That will only come if they are able to teach each generation the value of family wealth.