The believe that because of Bitcoin limited supply the price will rise is a myth

[kudryas]

It is not myth in my opinion and it can be one of the strongest reason behind bitcoin touching a million mark in future.Rest depends on demand for bitcoins in coming years.

[suzanne5223]

Let's suppose that for some reason the supply of potato drastically decreases all around the world. Does that mean that people will pay 10.000 dollars for a potato or give up their cars just to get a potato? Of course not. This is because the utility of consuming a potato - the want-satisfying power of a potato is much smaller than that of a car or of 10.000 dollars worth of goods or services. In other words, from the mere fact that the supply of something is limited it does not follow that the price will soar.

In comparison to a potato, Bitcoin is not even a physical tangible good that can be used for satisfying human wants or needs, and its only utility is that it functions as a medium of exchange. So, just because Bitcoin supply is limited, that does not mean its price will rise. People will NOT pay enormous amounts of money just to have a medium of exchange function, especially if this function is equally available whether the price of Bitcoin is 1 cent or 7.000 dollars, and if this function can be realized with various alternative cryptos or fiat money.

I disagree with OP because the limited in supply of bitcoin was the main thing that make the price surge ever since bitcoin creation. However, in economics what lead to scarcity is insufficiency or short supply of substance or commodity.

[Aryadwipanggah]

in the crypto world we can not convict this fact or mythos. let us review 1 year backward, bitcoin users continue to grow is a fact in economic law where the more demand of an item while inventory limited goods will automatically increase price, bitcoin whose number is limited while its users continue to grow making bitcoin prices continue to rise if we review from the year before it

[silent17]

Let's suppose that for some reason the supply of potato drastically decreases all around the world. Does that mean that people will pay 10.000 dollars for a potato or give up their cars just to get a potato? Of course not. This is because the utility of consuming a potato - the want-satisfying power of a potato is much smaller than that of a car or of 10.000 dollars worth of goods or services. In other words, from the mere fact that the supply of something is limited it does not follow that the price will soar.

In comparison to a potato, Bitcoin is not even a physical tangible good that can be used for satisfying human wants or needs, and its only utility is that it functions as a medium of exchange. So, just because Bitcoin supply is limited, that does not mean its price will rise. People will NOT pay enormous amounts of money just to have a medium of exchange function, especially if this function is equally available whether the price of Bitcoin is 1 cent or 7.000 dollars, and if this function can be realized with various alternative cryptos or fiat money.

Are you being stupid man? Why are you comparing Bitcoin to a potato? Potato is a food and Bitcoin more or less is a currency, Digital Currency to be exact. If you want to compare Bitcoin, you should at least compare it to gold or silver because this 2 is a currency base material.

[Kray]

Let's suppose that for some reason the supply of potato drastically decreases all around the world. Does that mean that people will pay 10.000 dollars for a potato or give up their cars just to get a potato? Of course not. This is because the utility of consuming a potato - the want-satisfying power of a potato is much smaller than that of a car or of 10.000 dollars worth of goods or services. In other words, from the mere fact that the supply of something is limited it does not follow that the price will soar.

In comparison to a potato, Bitcoin is not even a physical tangible good that can be used for satisfying human wants or needs, and its only utility is that it functions as a medium of exchange. So, just because Bitcoin supply is limited, that does not mean its price will rise. People will NOT pay enormous amounts of money just to have a medium of exchange function, especially if this function is equally available whether the price of Bitcoin is 1 cent or 7.000 dollars, and if this function can be realized with various alternative cryptos or fiat money.

So what you mean is, if Bitcoin is too expensive then nobody wants to use Bitcoin anymore? Hmm I don’t think so, as long as people still use it, especially if people already dependent to use Bitcoin then Bitcoin will still be used. People above me might true who suggest you to learn about economics deeper.

[chidrawarster]

Yes i would agree this fact and its a reality on ground as well.Due to limited supply, it depends on big players when they enter and leave the market ,thats where the whole concept of supply and demand enters and we see  price rise or drop .IF many of them are selling that would make the price gain or lose and vice versa.

[Phildo]

Let's suppose that for some reason the supply of potato drastically decreases all around the world. Does that mean that people will pay 10.000 dollars for a potato or give up their cars just to get a potato? Of course not. This is because the utility of consuming a potato - the want-satisfying power of a potato is much smaller than that of a car or of 10.000 dollars worth of goods or services. In other words, from the mere fact that the supply of something is limited it does not follow that the price will soar.

In comparison to a potato, Bitcoin is not even a physical tangible good that can be used for satisfying human wants or needs, and its only utility is that it functions as a medium of exchange. So, just because Bitcoin supply is limited, that does not mean its price will rise. People will NOT pay enormous amounts of money just to have a medium of exchange function, especially if this function is equally available whether the price of Bitcoin is 1 cent or 7.000 dollars, and if this function can be realized with various alternative cryptos or fiat money.

Dependency cannot be eliminated just like that, there must be people who want to pay with equal price to use it. Especially about Cryptocoin, so many altcoins so the users are scattered to various altcoins that previously incorporated in Bitcoin. Transactions between Coins are troublesome, aren’t they? Therefore the demand won’t be easily to break when the price is high and the supply is also become lesser.

[Leyss]

Bitcoin has no intrinsic value. It has utility.It quickly transfers the cost equivalent over long distances cheaply and reliably.The number of bitcoin users is constantly increasing. This means that the usefulness and value of bitcoin is growing in the same proportion.The more nodes in the bitcoin network the more expensive will be its unit of account.Bitcoin exchange rate fluctuations depend solely on the market mechanism.Demand is constantly growing and this entails an increase in the market value of bitcoin.

I have long ago come to the conclusion that after the production of all 21 million bitcoins, its price will not grow just because its offer on the market will decrease. As it is rightly said, bitcoin is a utility, a shell that allows you to quickly transfer the equivalent of the value of money over long distances. Already, there are many digital coins that provide the same services as bitcoin, much cheaper and faster. Why would I need to pay tens of thousands of dollars for what I can do for a few dollars using another crypto currency?

Bitcoin still has a value storage function. However, if it costs a very large amount, then people will be afraid to lose it and with different negative information, which even theoretically can affect the price of bitcoin, some people will immediately sell their bitcoins. This will produce a real drop in its rate, as the supply on the market will increase. The fall of the course along with negative information can cause panic, after which the rate of bitcoin will rapidly decline, down to depreciation. As a result, bitcoin will very badly perform the function of storing value, this value will be too unstable and problematic.

[EddyGameta]

Let's suppose that for some reason the supply of potato drastically decreases all around the world. Does that mean that people will pay 10.000 dollars for a potato or give up their cars just to get a potato? Of course not. This is because the utility of consuming a potato - the want-satisfying power of a potato is much smaller than that of a car or of 10.000 dollars worth of goods or services. In other words, from the mere fact that the supply of something is limited it does not follow that the price will soar.

In comparison to a potato, Bitcoin is not even a physical tangible good that can be used for satisfying human wants or needs, and its only utility is that it functions as a medium of exchange. So, just because Bitcoin supply is limited, that does not mean its price will rise. People will NOT pay enormous amounts of money just to have a medium of exchange function, especially if this function is equally available whether the price of Bitcoin is 1 cent or 7.000 dollars, and if this function can be realized with various alternative cryptos or fiat money.

Supply depletion is not the main cause of price inflation, demand influences it also. If the supply keeps reduced and the demands are low it won’t create inflation. Then the usage dependence, in this case Bitcoin, won’t be as simple as changing it to altcoin even to anything else. The huge amount of altcoins could break the market so there will be no market centralization could make transactions difficult.