Topic: Idea of btc is genius the limited supply that's why i think it's safe heaven - page 2. (Read 222 times)

Bitcoin's not that genius per se, the idea of a limited-supply currency has always been played around by economists and governments alike, but the thing that bitcoin has that most currencies do not have, is the fact that it is decentralized and deflationary at the same time. The decentralization aspect of this cryptocurrency allows it to be accessed by a larger amount of people, not just citizens of a single country, but the entire planet per se. And when everyone on the planet's gunning to have a piece of your supply, you bet your bottom dollar that your coin's value's bound to shoot up eventually. And then there's the deflationary aspect of bitcoin, meaning that with all the people around the planet wishing they could have at least one bitcoin, they also have to play with the fact that the supply is limited.

These two concepts play around with each other and is the main reason why bitcoin's so valuable these days, it's technology is dated, a lot of other cryptocurrencies in the market does what it can do, but much better, and it doesn't have that much going for itself security-wise since a lot of governments have found ways to circumvent the anonymity aspect of crypto, but what it's great at, is being a coin.

You don't stay rich with bitcoin but you have access to being rich with bitcoin if you are Hodling bitcoin. So the value is placed on the price and how many you have but once sold then such access is taken from you and transferred to another person who buys and hodl. That is the point and to say bitcoin can make someone rich is subjective depending on what the proceed is used for and that is same access to being rich that I was talking about.

so from this we can see that the value of bitcoin is actually created because people believe in it and its future potential, so they invest in it, while its limited supply is just one of the factors that makes bitcoin attractive, just like blockchain technology which is the architecture. because i also see it that way, the limited supply of bitcoin is not the main point that makes bitcoin more valuable, but there are many other factors that make this happen, such as miners, demand, credibility, etc, that needs to be considered.

Limited supply doesn't mean it will have value and the value will be increasing! There are literally millions of dead coins with limited supply and no one cares. Bitcoin enjoys the perk of being a pioneer cryptocurrency. Many coins came in later with great technical sophistication and simplified UI, but majority of them died. Bitcoin is still standing strong because it has a huge user base and a great community. No other coin was able to compete here. There's nothing genius about it. Also the limited supply has no correlation with keeping wealth safe! 

Anyone could have put two and two together, mate.

It is a very common economic concept. Less supply, more demand = higher prices. That is just how it works. Although bitcoin had a fixed supply to fight against inflationary pressures it just so happened that a lot of people took interest and now there’s so much demand compared to its supply.

The limited supply of Bitcoin is not the only reason for its value, if it comes to limited supply then 21 million is still not a small number, and Satoshi could even reduce it to 11 million which would make it more limited in supply.

The main reason why Bitcoin is going value is the number of holders who believe in it, and the decentralized nature of it. If Satoshi and his wallets start selling Bitcoin then Bitcoin can lose a lot of its value.

Even Satoshi is still holding his Bitcoin, and that's why Bitcoin isn't lose much value. The holders from 2017 are still holding their Bitcoin and holders from 2024 are also holding their Bitcoin.

If holders somehow start selling their Bitcoin holdings then Bitcoin will lose its value but as long as they hold their coins, and new holders start accumulating and holding then Bitcoin will continue to rise in value.

Limited supply + infinite demand = unlimited wealth

Your research is spot on professor. Bitcoin indeed cured poverty. In a few years the early adopters of bitcoin will become so rich, they’ll have enough money to buy a small European country entirely.

The only thing you need is some money to start things and patience, lots of patience. Make no mistake, throwing money into bitcoin is the easy part. Waiting is the hardest part of this game. You should probably make a revision to your article and add that part too.

Yes, having a limited supply is important for the whole concept of Bitcoin, but the scarcity/limited supply doesn't determine the price.
Demand is what determines the price. You could create an altcoin with even more limited supply than BTC, and the price of that altcoin would be close to zero. Zero demand means a zero price. Low demand means low price. Supply doesn't play such a big role here.
The demand for BTC is driven by the trust in Bitcoin and by the expectations of a higher future price.
There's nothing genius or ground breaking about the concept of limited supply. Some companies have limited supply of stocks, therefore their stock prices are kept at a high level. Satoshi Nakamoto didn't invent the wheel or fire.

Even gold does not compare to Bitcoin in terms of limited supply. The amount of Bitcoin that can be mined is limited and decreases with time, while new quantities of gold are extracted daily in addition to the archaeological finds that are found in abandoned archaeological sites.

I expect that what inspired Satoshi with the idea of limited supply is paper money that constantly inflates due to continuous printing. Governments often resort to printing more paper money when they encounter economic problems, and this makes this paper money worthless over time.

incorrect
there was a coin called "unobtainium" it only had 250000 coins it would ever create..
its price was crap and then no one bothered with it

If limited supply is the main reason Bitcoin price can be so high, I can just recruit few developers to create shitcoin that the maximum supply is 100 coins and boom the price will be higher than Bitcoin since the supply is more limited than Bitcoin.

The value of Bitcoin are more than that, and the reason why it can reach $66K is people are believe in Bitcoin, the demand is keep increasing.

Investing in Bitcoin could make people become rich, but not all rich people invest in Bitcoin.

Hey man, I think you need to cut down on your Doritos and Monster consumption. Calm down, man. When you get the high you start pontificating on economics like you're a Nobel Prize winner and see if when you get the sugar and caffeine crash you're going to get the blues.

the main thing that gives bitcoin value of over $50k a coin is actually that no where on the planet can someone mine bitcoin for just $100
heck no one on the planet can mine a bitcoin for $1000
heck no one on the planet can mine a bitcoin for $10000
heck no one on the planet can mine a bitcoin for $20000
heck no one on the planet can mine a bitcoin for $30000

so with no one able to acquire bitcoin cheap. sets the value
the higher the cost to mine the higher the minimum acquisition via any method is. and thats what sets the value 'bottom'

yes limited supply helps, but the market price is not based on the ~20m coins in circulation. its based on the lesser amount of coins on the actual exchange market order books, which people actually trade.
and when miners want to cash out to pay bills they wont sell for less than they used to create the coin they are selling

other things that add to the speculative market price that sits above the value('bottom'):
added to that there are some places(pacific islands) where the mining cost is over $100k so being able to market buy for $50k+ is a bargain for them compared to mining so they too help raise the market price
people desires for bitcoin for actual use
the popularity
its limited supply over all

yes limited supply is a factor but not the sole/reason.. its the PoW cost factor that give it a better standing, rather than other coins of other cheap silly proofs like PoS
ethereum for instance has a underlying value of just $30 right now so its price is speculatively inflated way above its value. thus has a large hole it can fall into

Limited supply so over the time there will be less coins so the idea of this are genius.
Even If the btc price will be 500k than many holders might sell some of the coins but always will buy when lower price and will hold some bitcoins.
No matter how high the price we weight btc value just with fiat currencies but it's deflationary against many other things like also to gold and If something is less then other things then off course it will have higher value.
The limited supply idea of something it's genius and good for long term holding to have something wich keep wealth safe.
Off course we can say that there is a lot of things less than other things weighted against them to compare their value but for example only btc now have the guaranteed mechanism of limited Supply and Halving. 
So the btc are for those who want to be rich and stay rich.