A Deep Dive Into Bitcoin's Scarcity

[aplistir]

Nowadays scarcity is a relative concept.

If exchanges are using fractional banking, and I believe some of them are, then there is an unlimited amount of "paper bitcoins"

Fractional banking is an accepted and "legal" practice in banks, so why would they not be using it  in exchanges too.

[seoincorporation]

I have been always telling my fellow bitcoin investor friends. Bitcoin is scarce!. And it is scarcer than we think.

We mined 17.5 BTC up to the present. 1m BTCs is in Satoshi's account. 4m BTCs is lost.

Grasping this scarcity may help why BTC is still undervalued!

From the article below;

If you own just a single bitcoin, only 17 million other people will ever have as much as you.

We have never had true scarcity until now, and because of that, it's a concept that's hard to grasp.

Furthermore, and scaling up a little,  let's assume bitcoin manages to hit critical mass, and everyone on the planet tries to grab a piece of the action. There would only be 0.003 BTC for each person…


Check the article below;
https://www.chepicap.com/en/news/8455/a-deep-dive-into-bitcoin-s-scarcity.html

Even Satoshi thinks about this, he says the lost bitcoins can be considered as a donation because less btc on circulation means they should have more value.

But this is a good bump signal, at least it has a reason to bump.

[bettercrypto]

Yeah! I agree with you OP. Due to the scarcity of bitcoin, it might grow up. The price of it will increase because someday, people will gradually adop the changes when it comes i  currencies. Hopefully, by that time I hold already 2 to 5 bitcoins in my wallet. So that,if ever it goes up, I have many dollars to be converted. I am imagining that bitcoin becomes 30k dollars and I am buying a lambo soon.

[lisasteca]

Next year will be a great year for bitcoin, miners will start hoarding bitcoin because of the halving to 6.25BTC per block reward, and at this stage, I believe people won't be selling for cheap price, people have to be careful because greedy Ponzi schemes and HYIP will be on the rise once more. I think the big banks and some critics of the bitcoin are busy filling their bags while the suppose apostles of bitcoin are listening to FUD.

I am not sure about it , price of bitcoin it will be speculation matter  when is good time to explode it will and someone will help the markek to make huge profit!

[CryptInvest]

It seems to me that Bitcoin continues to be undervalued due to the fact that it is easy to fork. Altcoins bite off a piece of cake from the total value of Bitcoin. The availability of alternatives reduces the cost of a financial asset.

[magneto]

I have been always telling my fellow bitcoin investor friends. Bitcoin is scarce!. And it is scarcer than we think.

Scarcity isn't just about the supply. It's also about the quantity demanded.

If adoption doesn't pick up, then bitcoin will not become more scarce, and none of these calculations that you have made would matter whatsoever. I also think that the assumption of everyone in the world holding equal amounts of BTC is not a valid one, as that would pretty much never happen.

But I understand where you are coming from in terms of your concept of "true scarcity", and I agree. Given the fact that fiat doesn't have a limited supply the way that bitcoin does with a capped supply, it can be difficult for people to see the advantages that bitcoin has regarding its function as a store of value compared to that of fiat currencies, though it is be apparent to many BTC adopters.