Bitcoin’s Economic Model: Scarcity, Incentives, and Adoption.

[Sowat]

Bitcoin is a cool form of money precisely because of its economic architecture: a defined emission schedule, a market price and public open access.

Market Cap - The market cap of bitcoin may be in contrast to the other monetary systems, because the latter could not be modified and the total number of coins is … in a nutshell: 21 million. Bitcoin is generated through the mining process and the bitcoin mining reward/benefit for each block put into use reduces itself by 50 % in 4 years.

Shit coin scarcity does not equate to value. The Bitcoin market value is created through demand and adoption.
One additional item to mention is the incentive scheme: miners are rewarded for securing the network while users must include a transaction fee in their transaction to get it into a block. As the block reward decreases the significance of transaction fees for Bitcoin's security also increases.

What do you think is the crucial element that makes Bitcoin economically sustainable: a closed supply, the incentives or adoption?

[BIT-BENDER]

So much is going on in this body of the post but all you are producing is still very basic, at first glance at the image I actually was expecting more but honestly the product is too basic.

What do you think is the crucial element that makes Bitcoin economically sustainable: a closed supply, the incentives or adoption?

I bet you that if you do your research you would see answers to this question and even more things relating to this question for you to contribute. Nevertheless the primary element that makes Bitcoin economically sustainable is the demand and supply chain every other elements are factors that either affect the supply and demand positively or negatively.

[L E G E N D A R Y]

I bet you that if you do your research you would see answers to this question and even more things relating to this question for you to contribute. Nevertheless the primary element that makes Bitcoin economically sustainable is the demand and supply chain every other elements are factors that either affect the supply and demand positively or negatively.

You’re right about the importance of supply and demand, but demand itself doesn’t just appear from nowhere you know. Users need a good reason to keep buying, holding and using bitcoin and that’s where factors like scarcity, utility, adoption and network effects, yeah and confidence in the system can actually influence that demand, but I guess you’re right though, these factors sure does affect demands and supply either positively or negatively.

[Ruttoshi]

Shit coin scarcity does not equate to value. The Bitcoin market value is created through demand and adoption.

Shitcoin can never be scarce because it's the only legit scamming project in the crypto space. We see a lot of neew project everyday and they fade off just like they came.

What do you think is the crucial element that makes Bitcoin economically sustainable: a closed supply, the incentives or adoption?

Bitcoin is like a normal commodity which demand and supply is always the crucial element that determines its value. However, the decentralized nature of bitcoin which gives you the opportunity to be your own bank and the censorship resistance of bitcoin has built investors confidence in it. Bitcoin is also a store of value overtime. All these and many more has led to high demand and increase in bitcoin adoption.

[_act_]

Yes, scarcity is one of the reasons bitcoin price has been going up, coupled with adoption/buying. But there are truly many altcoins that are scarce, but they are not like bitcoin because as they are bought, they are later sold. It got to the point that altcoins are regarded as something that people are buying and dumping one for another which makes most of them not to be scarce the way investors are thinking about them.

[crwth]

Let's look at it over a longer timeframe. I imagine that over time, mining rewards would lessen, and I'm seeing transaction fees replace block rewards. Would it be sustainable enough? I think it would be dependent on that economically. This is the current debate, IMO.

We have no problems with the 21M cap, and it's more credible as we get closer to it. I think this is the main feature BTC offers aside from other asset types.