The concept of scarcity in economics refers to the limited availability of a resource, but its value is only realized if there's demand for it. Bitcoin's fixed supply is often cited as a source of value, but this overlooks the role of demand in determining worth.
Discussion
And demand is growing ♾️
Scarcity should be expressed as demand / availability
The scarcity of a good must always be measured in relation to its demand.
The value of a scarce asset is determined by those willing to sell at a certain price (price discovery).
Demand is required to make the sale, but more demand does not increase the price. The seller CAN increase the price because there is more demand. There is no price/value realised when someone is not prepared to sell, even with all the demand in the world.
Yes! The only real threat to Bitcoin is the stupidity of people, and never underestimate the stupidity of people. That said, I believe Bitcoin will succeed because of its incentives.
100%, IMHO. My thesis, posted previously: the halvennings matter exponentially less over time. It just makes sense, and we see it in the price over time. Adoption / demand (for both the bitcoin token, and block space) is where attention should be focused increasingly.
Sound money will always have Demands💪🏿👏
Hi max 😉🤟🏴☠️ You make an excellent point. While Bitcoin’s fixed supply certainly adds an element of scarcity, its value is ultimately driven by demand. Just like any other asset, scarcity alone doesn’t guarantee value it’s the intersection of supply and demand that determines worth. Bitcoin’s value proposition lies in its ability to serve as a decentralized, trustless, and scarce store of value, but if demand wanes, even a finite supply won’t necessarily preserve its value. This dynamic is key to understanding not only Bitcoin, but also how all markets operate.