A Deep Dive Into Bitcoin's Scarcity

[BeManga]

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

well you have some good point on it
but before it happen bitcoin need to go mainstream for mass adoption
it will take a long time before it happen but as one of supporter im willing to wait
the best thing to do more is accumulate more while i can

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[Ucy]

How do you know how how much Bitcoin has been lost? There is no way of telling as far as I know. What may look like lost Bitcoin to you may be long term holders. Atleast we have seen the kind of long term holders move part of unmoved Bitcoin all of a sudden 

By the way, the satoshi 1 million Bitcoin is just a speculation. No one is certain how much he really owns

[BitBustah]

How do you know how how much Bitcoin has been lost? There is no way of telling as far as I know. What may look like lost Bitcoin to you may be long term holders. Atleast we have seen the kind of long term holders move part of unmoved Bitcoin all of a sudden 

By the way, the satoshi 1 million Bitcoin is just a speculation. No one is certain how much he really owns

I've read a lot of reports on the estimated amount of lost bitcoins and it is definitely in the millions.  Think of how many people had btc when it had no value, would you put any effort into keeping it secure? Doubt you would just how they did.  It would be really heart wrenching to have lost thousands of bitcoins only to find them worth millions in the future.

[markstivn98]

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

It is an interesting subject, but if it is available to everyone, what will it value?
The increase in the number of people using bitcoin will cause it to become more scarce in the future.
But that will not happen if output increases.
It is a digital currency, not paper.

[pawanjain]

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

It has been discussed over many times on this forum and the solution is just to use the divisible units of bitcoins 'Satoshis' to the maximu extent.
Since bitcoin has not gone mainstream it is easy to classify bitcoins as a whole but as the adoption takes place and bitcoin grows bigger, the classification should switch to Satoshis instead.
Only then it would be appropriate to  make the payments and transactions smooth. Further more as Franky1 said if later in the future the devs decide to divide it into milli sats, it would be an addition to the current maximum divisible units of bitcoin.

[omone1]

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.

[bigmelons25]

It will be really interesting to see how fast the price will rise when the next block reward gets cut in half.  Inflation rate will be lower than all fiat currencies and it will only continue to drop in the future, this will make bitcoin a better store of value than gold

[franky1]

Next year will be a great year for bitcoin, miners will start hoarding bitcoin because of the halving to 6.25BTC per block reward,

It will be really interesting to see how fast the price will rise when the next block reward gets cut in half.  Inflation rate will be lower than all fiat currencies and it will only continue to drop in the future, this will make bitcoin a better store of value than gold

dont get to set on thinking the halving will be a direct cause.

put it this way. imagine the hashrate was 50ex and the mining cost was ~$5k/btc
but imagine that the market rate was $12k(future time)($7k speculative margin/profit)
....
this continues for months until the halving event. and then when it happens it obviously makes mining costs move to $10k/btc
but because the market is already(at the time) $12k miners are still in profit. so you dont see any big change and wont see a big instant change to $24k.

what happened in 2012 was that the price didnt change much. it wasnt until ASICS launched and the mining costs rose in 2013 did the prices suddenly go crazy.

so if there is already alot of speculative margin(profit above cost) then dont expect the halving to cause much reaction

[Shenzou]

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

Well you know what that means, start holding your bitcoin, it is actually crazy i though that the supply was supposed to last us at least 100 years before all the bitcoin is mined, but with the supply running low this could lead to many thing not just people having less that 1btc in their wallets, but it will require a lot of machine power to mine what is left of it, meaning that transactions will take more fees and more time, which than may lead to micro transactions made through bitcoin impossible.

[Nolimitz84]

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…

The calculation is too cold.According to Your statement, everyone should strive to purchase bitcoin in view of its growing deficit.But not everyone on the planet has gold and not everyone wants to buy it.But if you look from a pragmatic point of view, right today you can buy 1 Bitcoin and not worry about your old age

[naturerock]

Im still not totally convinced that miners will be perfectly fine with living off transaction fees alone.  They may move to another chain with higher rewards once the inflation drops below 1 percent.  Being a deflationary currency is a gift and a curse.

[gentlemand]

Im still not totally convinced that miners will be perfectly fine with living off transaction fees alone.  They may move to another chain with higher rewards once the inflation drops below 1 percent.  

That's going to be in 2032. By that point lord knows what the landscape will look like but if BTC is still up there the idea of another SHA256 coin consistently paying out more to miners will be laughable. They'll have been left in the dust years before.

Any chain can dole out more coins. Whether those coins are worth anything is another matter.

[fuathan]

How do you know how how much Bitcoin has been lost? There is no way of telling as far as I know. What may look like lost Bitcoin to you may be long term holders. Atleast we have seen the kind of long term holders move part of unmoved Bitcoin all of a sudden 

By the way, the satoshi 1 million Bitcoin is just a speculation. No one is certain how much he really owns

OK. Satoshi has more than 1 million. But 1 million is certain.

[fuathan]

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…

The calculation is too cold.According to Your statement, everyone should strive to purchase bitcoin in view of its growing deficit.But not everyone on the planet has gold and not everyone wants to buy it.But if you look from a pragmatic point of view, right today you can buy 1 Bitcoin and not worry about your old age

According to the rich list of Bitcoin, there are lots of investors who have more than a BTC so the equation is close to accurate. An ordinary guy in this forum has more than a BTC for sure too.

[okala]

That is why bitcoin operate on the economic law of demands and supply, the more the demands for bitcoin rise the higher the price will go, bitcoin is a deflating commodity it can never be scarce but the price can increase to any amount as long as the demands for the currency keep rising.

[fuathan]

That is why bitcoin operate on the economic law of demands and supply, the more the demands for bitcoin rise the higher the price will go, bitcoin is a deflating commodity it can never be scarce but the price can increase to any amount as long as the demands for the currency keep rising.

Demand is the key. No question about it. However, bitcoin is designed to be 'scarce'. Halving, 10-min rule, steady increasing of difficulty etc. are the indicators of it.

[pawanjain]

Well you know what that means, start holding your bitcoin, it is actually crazy i though that the supply was supposed to last us at least 100 years before all the bitcoin is mined, but with the supply running low this could lead to many thing not just people having less that 1btc in their wallets, but it will require a lot of machine power to mine what is left of it, meaning that transactions will take more fees and more time, which than may lead to micro transactions made through bitcoin impossible.

You should definitely read this post made by franky1 and if you already did then do it again. This clearly explains the fundamentals of mining difficulty and the units of bitcoin.

there are 2,100,000,000,000,000 sharable units currently
under the assumption of this. the bitcoin halving events would end new unit creation in ~2140

however some bitcoin devs want to split up the units of account by a further 1000x called millisats. meaning more units of account can be shared out

i know many people will say 'but there will still be only 21m btc because each btc is no longer
100,000,000 sats
but
100,000,000,000 millisats
also by having more dvisions, this would allow more 'coin creation (and thus more halving events) to occur meaning coin creation would continue for a dozen+ more years ()

[33bitcoin]

That is why bitcoin operate on the economic law of demands and supply, the more the demands for bitcoin rise the higher the price will go, bitcoin is a deflating commodity it can never be scarce but the price can increase to any amount as long as the demands for the currency keep rising.

Demand is the key. No question about it. However, bitcoin is designed to be 'scarce'. Halving, 10-min rule, steady increasing of difficulty etc. are the indicators of it.

The issue at hand is will bitcoin be too scare? Inflation will drop to near zero percent and mirns will have little incentive to keep on mining, I dont think transaction fees will be enough.

[Alpha0One1]

Once Bitcoin hits mass adoption then we will see its true value.
Take note that Bitcoin is divisible into 1.00000000. Making 1 BTC into 100,000,000 satoshis.
IMO, max bitcoin that will be generated should not be viewed as 21 million btc as we might soon be dealing with satoshis only in the near future.

[maianh09]

The amount of bitcoin circulating on the market falls, and the total bitcoin supply is about to reach its maximum level through mining. When the amount of Bitcoin reaches a maximum of 21 million through mining, everything will officially begin. When Bitcoin cannot exploit the market with high demand, it will make Bitcoin price rise and the number of people who want to own it increases. Buy Bitcoin now, or you won't be able to hold it in the future.