roadx on Nostr: No product or service is inherently 'scarce by design,' not even Bitcoin. If ...
No product or service is inherently 'scarce by design,' not even Bitcoin. If something could be 'scarce by design,' it would mean that scarcity itself could be replicated, ultimately creating abundance—the opposite of scarcity.
Marginal utility ensures that even highly demanded products lose their scarcity when supply exceeds demand. There is no such thing as 'intrinsic scarcity'; scarcity is driven by external market dynamics. Demand is an external dynamic.
Therefore, 'scarce by design' is a self-contradictory argument and could be labeled as marketing rhetoric. The supply of Bitcoin is not 'scarce by design.' It gradually decreases over time through a halving mechanism and is ultimately capped at a fixed total of 21 million coins independent of demand.
Together with Bitcoin's other key features—such as its decentralization, immutability, divisibility, censorship resistance, and permissionless access—along with the current market dynamics of competing with fiat currencies, gold, and altcoins, a strong argument can be made that Bitcoin has the potential to become one of the most economically scarce assets.
Marginal utility ensures that even highly demanded products lose their scarcity when supply exceeds demand. There is no such thing as 'intrinsic scarcity'; scarcity is driven by external market dynamics. Demand is an external dynamic.
Therefore, 'scarce by design' is a self-contradictory argument and could be labeled as marketing rhetoric. The supply of Bitcoin is not 'scarce by design.' It gradually decreases over time through a halving mechanism and is ultimately capped at a fixed total of 21 million coins independent of demand.
Together with Bitcoin's other key features—such as its decentralization, immutability, divisibility, censorship resistance, and permissionless access—along with the current market dynamics of competing with fiat currencies, gold, and altcoins, a strong argument can be made that Bitcoin has the potential to become one of the most economically scarce assets.