Halving equals more scarce.
Halving equals less inflation.... it in no shape or form equals Bitcoin to be more scarce than it already. Scarcity in Bitcoin doesn't always play much of a role because during a bear market there are more sellers than buyers
It is not just about scarcity alone
As it is always about utility too as these two characteristics of an asset, service or good are complementary and work hand in hand. What I mean to say is that utility has the same effect on price as scarcity. If Bitcoin becomes more useful (when, for example, people start to use it more widely as a means of payment) its utility rises which leads to higher prices even if its scarcity doesn't change or even decreases (i.e. Bitcoin becomes more abundant). Conversely, if people become less interested in it, Bitcoin's utility goes down - along with its price
I must admit. I, for one, also always thought that
Scarcity has the biggest role in Bitcoin's price. I didn't realize the contribution of utility
You are definitely not alone
As quite a number of people think that scarcity determines the price of an asset. It does but along with utility. In fact, I explained the relationship between utility and price on several occasions before. The truth is, without utility scarcity means nothing (though it works in reverse too). If something is extremely scarce but it has no practical use and application (whatever those might be in terms of the subjective theory of value), its value will be null
And as I said, it works in reverse too. If something has tremendous significance and importance for us (what utility comes down to), it may still have low or no value for being extremely abundant (in terms of price). We cannot live without air but it doesn't cost us anything for the simple reason it is so plentiful that there is enough of it for everyone (as they say, air for everybody, free, and let no one be left behind)
But the main difference between them is goods can be produced many times over but in Bitcoin (regardless of halvings) has a limited supply
Without actual utility a limited supply turns irrelevant and inconsequential. Quite a few shitcoins had a very limited supply, some of them even less than Bitcoin's, and what's become of them?
