Benefits of Scarcity and Decentralization on Bitcoin value

CryptopreneurBrainboss

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Quote from: Good_Doctor on August 05, 2023, 02:45:18 AM

I've heard a lot about the potential of Bitcoin as a store of value. Can someone explain how its scarcity and decentralized nature contribute to its value proposition?
I hope this brings more understanding to y'all as it will to myself... thank y'all for the reply so far... corrections made already and I await more of your thoughts and replies about this !

Bitcoin has gone passed the stages of been a potential store of value because it already is and that's because it seems the initial target of Bitcoin been a currency is receiving some backlashes due to the government strongly fighting against that form happening because it'll mean they'll lose control of the finance of their citizen and without been in control of power (money) their government won't be taken seriously. Bitcoin is a store of value which is what investors are attracted to investing in Bitcoin. The scarcity of bitcoin (limiting the supply to just 21 million coins that can ever be minted) means that inflation won't be a problem for Bitcoin and the value of your investment can always intact.

The decentralized nature contribute to its value proposition because Bitcoin is different from other currency as they are all centralized but since Bitcoin is different it give those interested in it an alternative to the fiat (centralized) system and a different means of exchange. If bitcoin wasn't decentralized, it won't have been any different from the numerous fiats solution that we already have but because it is different and has a fixed supply it's the better alternative to fiat transactions.

Doan9269

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Quote from: Good_Doctor on August 05, 2023, 02:45:18 AM

I've heard a lot about the potential of Bitcoin as a store of value. Can someone explain how its scarcity and decentralized nature contribute to its value proposition?

Even though your title had said it all, bitcoin scarcity is not in the difficulty you experience for you to have bitcoin, you can easily get bitcoin from a friend as gift or you exchange for it with your fiat on an exchange, what is being meant here is the way bitcoin could be created, unlike how the fiat currency is being minted indescriminately by the government, bitcoin has a process to go about through in which only miners can mine it after being the first in completing the required task, decentralization could also means that anyone can have this same equal opportunity to perform the same task and mine bitcoin, they anyone can have it and bitcoin is not tied down to any government policy from any country, it works strict by it protocols.

Good_Doctor

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Quote from: Jones Praise on August 05, 2023, 09:47:10 AM

Bitcoin is one of the world's most sought after cryptocurrency or if not the most. So you don't expect it to be easily available for traders or investers on platforms. Most Traders prefer to invest in Bitcoin rather than other crypt currencies due of it's high income yield .This results to it's fluctuation on the market.

This is not actually related or of any importance to what was posted! You should not force yourself replying to a post you lack understanding of. Just stay quiet and learn okay!

Sim_card

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@OP, you made me jumped into your thread as if there is something interesting based on your topic. Anyway you are a newbie and I wouldn't blame you for this because you want to draw everyones attention to your thread with the topic which you just did. @Lovesmayfamilies has given you the right way to present your thread to match with the topic. For your question, you have been given enough topics to read to make the understand the potential of bitcoin. Do well to read them and if you are confused you can still ask questions. Enjoy reading

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Quote from: Good_Doctor on August 05, 2023, 02:45:18 AM

I've heard a lot about the potential of Bitcoin as a store of value. Can someone explain how its scarcity and decentralized nature contribute to its value proposition?
I hope this brings more understanding to y'all as it will to myself... thank y'all for the reply so far... corrections made already and I await more of your thoughts and replies about this !

Yeah, in crypto space, you will get to listen a lot about BTC is a store of Value Or BTC is a hedge against inflation etc. The back story for both is same. Which is scarcity and decentralization of it. I could extend it to other factors too but you specifically mentioned these two so i am going to make it on these two factors only.

1. Scarcity: means limited supply which means, BTC in compared to Gold has limited supply which means with time the demand of the BTC will exceed supply thus Price of BTC will increase.

2. Decentralization: Unlike Gold, BTC is not controlled by some or group of entities. You must be thinking how gold is managed by single entity. It's not but tracked, processed by single or group of governments. Point is, Gold's supply could be restricted but BTC shops will be open always.

When the value will increase due to scarcity and demand will increase due to decentralization factor, The price will be increasing too. Not to mentioned halving process which is the main player of whole game. Which assure the price to move up with time.

Jones Praise

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[quote /]
Bitcoin is one of the world's most sought after cryptocurrency or if not the most. So you don't expect it to be easily available for traders or investers on platforms. Most Traders prefer to invest in Bitcoin rather than other crypt currencies due of it's high income yield .This results to it's fluctuation on the market.
[/quote]

Cantsay

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Regarding ethics of the forum it wasn't intentional to go against it ok! I hope we encourage good things!

It’s just that title like this are mostly found in blog posts that are there for click baiting or some YouTube videos that were posted to draw the attention of the public but when you finally click on them to see what they contain you’ll be left disappointed.

You should keep at the back of your mind that Bitcointalk.org is not a social media platform so it seems pointless using such title and I don’t think it’s good to recommend others to use such technique and trust me if you continue with such posting habit sooner than later you’ll find yourself in the ignore list of many forum members.

You said “you don’t want to miss out of the replies “ and going through the replies I see that most of them are about your choice of title so just take your time and reflect on it again if your predictions were correct about the replies.

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Quote from: pawanjain on August 05, 2023, 06:25:20 AM

Quote from: Good_Doctor on August 05, 2023, 02:45:18 AM

<...>

Just look at the chart below and you will find out how the scarcity of bitcoin contributes to it's value proposition.
After every halving the bitcoin becomes more scarce and it becomes more tough to mine more bitcoin.
This eventually increases bitcoin price and value.

-snip-

It seems that the forecast was not correct if we focus on last year's price expectations Undecided

I strongly believe that after the current accumulation phase a new ATH will come next year or the other one, but the early flattening of the curve is a bit worrying to me. I hope we don't see a trend reversal anytime soon.

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Quote from: Good_Doctor on August 05, 2023, 02:45:18 AM

I've heard a lot about the potential of Bitcoin as a store of value. Can someone explain how its scarcity and decentralized nature contribute to its value proposition?

Just look at the chart below and you will find out how the scarcity of bitcoin contributes to it's value proposition.
After every halving the bitcoin becomes more scarce and it becomes more tough to mine more bitcoin.
This eventually increases bitcoin price and value.

cryptoaddictchie

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Quote from: Good_Doctor on August 05, 2023, 02:45:18 AM

I've heard a lot about the potential of Bitcoin as a store of value. Can someone explain how its scarcity and decentralized nature contribute to its value proposition?

Ive been interested in the title I thought of something exciting or something new project or innovation that is a worth billion $. But anyways, a lot of factors could lead to its value and not just the decentralized system but also it has history of many things in the past that makes it valuable today and could be more in the future. One thing is for sure though, adoption of bitcoin will expand more and more as people realizing how good blockchain in terms of store of value.

lovesmayfamilis

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Quote from: UchihaSarada on August 05, 2023, 05:29:11 AM

Could you explain to me why your question is a $60B question, please.

I'm also surprised by the topic title, which is completely unrelated to the content itself. OP, you must have read motivational books like "How to attract users to your topic, make a discouraging title"?
A little advice, especially since you care so much that everyone is mutually polite, is to read this thread. I think you will follow the ethics of the forum and heed the advice.

Quote from: theymos on August 24, 2012, 02:31:55 AM

Include enough info in the title so that readers can mostly guess what your topic is about. Try to condense your topic's main idea into a few sentences. Ideally, people should be able to write useful, on-topic replies by just reading the title (though this sometimes isn't possible).

https://bitcointalksearch.org/topic/make-your-topic-title-posts-more-attractive-5182260

UchihaSarada

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Could you explain to me why your question is a $60B question, please.

Marketcap of Bitcoin https://coinmarketcap.com/currencies/bitcoin/
Fully dilluted marketcap of Bitcoin https://www.coingecko.com/en/coins/bitcoin

None of them is $60B and they don't match your figure.

fillippone

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Quote from: Good_Doctor on August 05, 2023, 02:45:18 AM

I've heard a lot about the potential of Bitcoin as a store of value. Can someone explain how its scarcity and decentralized nature contribute to its value proposition?

I guess you can find a lot of answers to your questions navigating the resources I collected in the linked thread:

5 Resources to teach Average Joe about Bitcoin

Hope it helps.

paid2

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You should read the following texts and books :

Bitcoin: A Peer-to-Peer Electronic Cash System by Satoshi Nakamoto

The Bitcoin Standard by Saifedean Ammous (you can find it easily for free on the internet but I won't promote any shady link)

You might also find this topic written by fillippone interesting (this article is also translated in many languages) :

Stock-to-Flow Model: Modeling Bitcoin's Value with Scarcity

Good_Doctor

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I've heard a lot about the potential of Bitcoin as a store of value. Can someone explain how its scarcity and decentralized nature contribute to its value proposition?
I hope this brings more understanding to y'all as it will to myself... thank y'all for the reply so far... corrections made already and I await more of your thoughts and replies about this !

Topic: Benefits of Scarcity and Decentralization on Bitcoin value (Read 189 times)