Scarcity is one of the leading factors of Bitcoins value

wxa7115

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Quote from: aoluain on November 23, 2019, 05:05:15 PM

Scarcity indeed,

In the future not too far away there will be high demand by people looking to have Bitcoin
and the growing number with it not willing to sell to meet that demand.
There will be an awful lot of people kicking themselves for not believing.

At the moment the target for many is to own BTC1
as the value increases that target will reduce

I think we are still at the early stage of BTC

If bitcoin really becomes as popular as we think and it reaches its potential of being a worldwide currency that can be used without the permission of any government then one single bitcoin will be more than enough to help you dramatically in your life and if the growth of bitcoin coincides with the weakening of fiat currencies and the economy as a whole then you can be sure that that bitcoin will buy you a lot of things in the future.

Even if we are not early adopters we are still part of an early minority so we still stand to get many of the benefits of bitcoin but there is only one condition and that is that you hold your coins despite everything that happens and many cannot do that unfortunately.

Abiky

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Quote from: aoluain on November 23, 2019, 05:05:15 PM

Scarcity indeed,

In the future not too far away there will be high demand by people looking to have Bitcoin
and the growing number with it not willing to sell to meet that demand.
There will be an awful lot of people kicking themselves for not believing.

At the moment the target for many is to own BTC1
as the value increases that target will reduce

I think we are still at the early stage of BTC

Agree. We're still in the early stages of Bitcoin. As the pioneer cryptocurrency improves over time, people will find it to be quite useful as a currency for daily transactions. The block halving would greatly contribute towards Bitcoin's scarcity in the long term. With scarcity, comes demand as people will find the pioneer cryptocurrency an attractive store of value just like Gold. As price increases across the crypto market, it'll be much more difficult for the average person to get ahold of 1 full Bitcoin. This would eventually lead people to transact in "Satoshis" instead of a Bitcoin, within the future.

Nonetheless, scarcity may be one of the leading factors of Bitcoin's value. But, it's not a guarantee that Bitcoin will become much more valuable over time. There needs to be demand from people in the mainstream world, for Bitcoin to be considered as a valuable cryptocurrency. As more people buy Bitcoin, the price will increase within the market. Considering that prices are still low these days (compared to BTC's latest ATHs), it could take a little longer than expected to see higher prices even after the next block halving event. Just my thoughts Grin

Wintersoldier

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Quote from: aoluain on November 23, 2019, 05:05:15 PM

Scarcity indeed,

In the future not too far away there will be high demand by people looking to have Bitcoin
and the growing number with it not willing to sell to meet that demand.
There will be an awful lot of people kicking themselves for not believing.

At the moment the target for many is to own BTC1
as the value increases that target will reduce

I think we are still at the early stage of BTC

For me, as long as we think that obtaining 1BTC is still possible for an average person, then we can say we are still at the early stage of bitcoin. Basically, after the halving and the price goes way too high, we will have difficulty in obtaining Bitcoin and we can consider ourselves late when it comes. So, for the meantime, as the price of bitcoin is still achievable, we can do our best to accumulate for the future. Though, the most efficient way for me to do this is to be active on the market. Do not just hodl but to trade when the market falls and trade when it recovers.

southafricadude

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Scarcity alone is not a factor. 3 legged horses are scarce, but you wont pay a lot for one. Bitcoin is scarce combined with being useful. More people want to use bitcoin for its properties, and combined with being scarce, the price rises as demand grows. On top of this, bitcoin also has the property of being more sought after as the price goes up...the higher the price goes, the more people want it.

minersday

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Scarcity and demand are part of the main contributing factor in either the increase and decrease in the market value of Bitcoin. These two factors are the underlining elements in the crypto and the economical space that influence the value of products in the financial ecosystem. But looking at the Bitcoin market now, scarcity does not really matter in terms of market value of Bitcoin. Bitcoin is not really scarce in the crypto market now. This means scarcity is no longer the leading factor of determining the market value of bitcoin. The real determinants of the market value of bitcoin are not really known considering the current state of the bitcoin space.

aoluain

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Scarcity indeed,

In the future not too far away there will be high demand by people looking to have Bitcoin
and the growing number with it not willing to sell to meet that demand.
There will be an awful lot of people kicking themselves for not believing.

At the moment the target for many is to own BTC1
as the value increases that target will reduce

I think we are still at the early stage of BTC

wxa7115

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Quote from: meanwords on November 21, 2019, 09:34:40 PM

Open your eyes people. Bitcoin would never or would take a long time to have a scarcity. Yes we do have 21 million supply of Bitcoin but we have what we called decimals. Let's say there's no more Bitcoin to mine, people can just move decimals and we wouldn't noticed it even if the coded supply is only 21 million Bitcoins. There will always be more supplies. The real driving price of Bitcoin right now is its technology, not its supply.

No, bitcoin is scarce and you are only talking about cosmetic chances, this is the equivalent of having a ton of gold and then claiming that we can increase its supply by using that gold to create many one oz coins, the supply of gold is still the same what changed was the way it is represented and nothing more.

Without a doubt the technology of bitcoin is one of the main drivers for the adoption of bitcoin through the world but to deny the supply has a huge effect as well is to close your eyes to the reality of the market.

bettercrypto

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The low supply of bitcoin and great demand of it make the volume in every exchange high. This is why bitcoin is the most expensive cryptocurrency today. There are also low supply coins yet they are not in demand with traders. Even bitcoin has 21M only, if there is no buyer then the price of it will never goes up. Demand and supply are the reason why the price goes down and up.

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Quote from: Youghoor on November 21, 2019, 10:41:17 PM

Quote from: Herbert2020 on November 07, 2019, 03:27:49 AM

21 million cap in my opinion is not about scarcity and price but instead it is more about having a clear maximum supply and a clear predefined plan for distribution of that supply. this design was specifically chosen to fix the problem with fiat system where there is absolutely no cap and no predefined plan of supply creation. the government can print as much money as they like and that causes inflation among a lot of other economical issues.

as a side product of that, we get the scarcity and with a limited supply and an increasing demand we get the rising price. of course it should not be forgotten that the demand is an important part of that rise otherwise we have altcoins with much smaller supply that are not only worth less than bitcoin but they are losing value as time goes by even though they are supposedly scarce too.

I think you don't understand the point this person is trying to make here. What this person is trying to say is that scarcity is one of the main things that influence the markat value of Bitcoin. And the reason was that Bitcoin has a fixed number of total supply which is the 21 million cap. He believes that the number of total bitcoin in circulating as some kinda scarcity nature to it. With a fixed number of total of supply, once demand increases, this will cause bitcoin to be a bit scarce which will cause the value of bitcoin to increase.

Bitcoin deficit, which is associated with its limited amount, I do not think it will play a big role in its price. In any case, not so much that Bitcoin has too much price, as many predict. Cryptocurrency is now developing very quickly, new types of cryptocurrencies are emerging that outperform Bitcoin in terms of capabilities and usages, and this significantly covers the shortage of bitcoins. Of course, bitcoin has its own characteristics and this will always determine its value among cryptocurrencies. However, not so much that it had a price of hundreds of thousands of dollars.

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Quote from: Herbert2020 on November 07, 2019, 03:27:49 AM

21 million cap in my opinion is not about scarcity and price but instead it is more about having a clear maximum supply and a clear predefined plan for distribution of that supply. this design was specifically chosen to fix the problem with fiat system where there is absolutely no cap and no predefined plan of supply creation. the government can print as much money as they like and that causes inflation among a lot of other economical issues.

as a side product of that, we get the scarcity and with a limited supply and an increasing demand we get the rising price. of course it should not be forgotten that the demand is an important part of that rise otherwise we have altcoins with much smaller supply that are not only worth less than bitcoin but they are losing value as time goes by even though they are supposedly scarce too.

I think you don't understand the point this person is trying to make here. What this person is trying to say is that scarcity is one of the main things that influence the markat value of Bitcoin. And the reason was that Bitcoin has a fixed number of total supply which is the 21 million cap. He believes that the number of total bitcoin in circulating as some kinda scarcity nature to it. With a fixed number of total of supply, once demand increases, this will cause bitcoin to be a bit scarce which will cause the value of bitcoin to increase.

meanwords

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Open your eyes people. Bitcoin would never or would take a long time to have a scarcity. Yes we do have 21 million supply of Bitcoin but we have what we called decimals. Let's say there's no more Bitcoin to mine, people can just move decimals and we wouldn't noticed it even if the coded supply is only 21 million Bitcoins. There will always be more supplies. The real driving price of Bitcoin right now is its technology, not its supply.

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Quote from: Pearls Before Swine on November 07, 2019, 08:35:36 AM

Quote from: Herbert2020 on November 07, 2019, 03:27:49 AM

21 million cap in my opinion is not about scarcity and price but instead it is more about having a clear maximum supply and a clear predefined plan for distribution of that supply.

True. Bitcoin isn't scarce if you consider how many decimal places a single bitcoin can be divided into. The whole point of limiting the total number of coins was to ensure that bitcoin, a form of money, could not be inflated infinitely like fiat can be. Satoshi no doubt saw the problem with hyperinflation situations and gov'ts printing money like they were manufacturing Monopoly games. And that is the beauty of bitcoin. One of the beauties anyway, because there are other attributes that make it an incredible currency.

But op, I agree that it is this 'scarcity' that is responsible for bitcoin's overall rise since its inception. Look at a coin like doge, which has inflation built into its code. That is probably the reason why it can't ever seem to stay much higher than 20-something sats. There are just too many coins circulating and it's never going to get any better.

Bitcoin has been divided into 8,000,000 satoshi units per Bitcoin. Bitcoin is only harder to mine and the value of Bitcoin is raised by the fomo of the community. Currently there are many individuals, businesses, large investment funds own it. In the future we can only comment that Bitcoin is reducing circulation because people are turning to holding rather than trading.

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I think that it's not just the scarcity, but also the fact that the most powerful computer network in terms of processing power stands behind supporting this supply and the per-determined schedule for releasing more bitcoins. Every participant in this network holds a mutual interest to uphold these standards and any deviation would imminently have them kicked-out of the network, without being able to enjoy the monetary incentive of mining so long as they support different standards than the ones set in stone in the BTC chain.

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For sure. You said it!

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Quote from: BigBoom3599 on November 17, 2019, 06:00:38 AM

Scarcity in itself doesn't create value though. You can have as little supply as you want, but if there is no demand, there won't be any value.

I'd argue that the thing that gives Bitcoin value is its brand name, its first mover advantage. Everyone has heard of Bitcoin, but almost no one has heard of, say, Ethereum or any other altcoin.

Compare Bitcoin to the thousands of shitcoins that are also scarce and have limited supply, but are worth (almost) nothing because they have no brand name. It's not that they are technically worse than Bitcoin, some may even be better than Bitcoin with some cool features. Yet they aren't more valuable than it. Simply because Bitcoin was the first.

Agree. Bitcoin has obtained its value mostly because of its branding recognition within the mainstream world. It's the first coin it comes into mind when anyone joins the world of crypto. It could have an extremely limited supply, but without demand, it'll be a worthless cryptocurrency across the market. I've seen some cryptocurrencies that are pretty undervalued considering their level of scarcity across the market. Litecoin is a good example of a coin that's much scarcer than most popular coins on the market (like Ethereum) but it's extremely undervalued these days. The only coin I believe that it retains its value over time is 42 coin. Right now, it's worth an average of $16,895 across the crypto market. This is odd for a coin that's not well-known within the crypto industry.

As for Bitcoin, it's hoped that each block reward halving would contribute towards its price in the long term. But the definitive indicator of its value, would be how much demand it experiences within the market. If people aren't deeply interested in Bitcoin, then I see no reason why it should increase in price for the foreseeable future. Just my thoughts Grin

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Quote from: boris singer on November 18, 2019, 01:17:51 AM

Quote from: karanggatak on November 18, 2019, 12:19:12 AM

scarcity occurs due to the increasing number of requests while the number of goods desired is limited. this is what makes an item scarce and makes it a valuable item and its value will also increase. the number of bitcoins is limited to only 21 million coins and each year the number of bicoin that can be mined decreases but the demand for bitcoin continues to increase. this is what causes the price of bicoin in the future will be more expensive. with this method bitcoin is protected from inflation which usually occurs with fiat money.

this factor can also move upside down if 60-70% of bitcoin is owned by several large groups, and only gives users the opportunity to take the rest. bitcoin will continue to move in large fluctuations associated with manipulation. Scarcity will make bitcoin a higher value but most people will be more dominant against altcoin. Bitcoin will face a crucial problem in volume spread.

It all comes down to the basic principle that is the higher the demand the higher the price and also the lower the supply the higher the price. Bitcoin is a good manifestation of this principle wherein the price surge so high because it both has high demand and low supply. Also, this I think is what makes Bitcoin to survive compared to fiat in times of crisis. On top of that, what made the value of Bitcoin rose so high is because of the features like how decentralize it is and being peer to peer which made the people stay.

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Quote from: ChrisPop on November 07, 2019, 05:59:08 AM

Bitcoin is simply said a scarce asset with functionalities that would meet the "specifications" of a global mainstream currency. I always like to give this example to people: recent statistics show that there are over 36 million millionaires in the world which means that Bitcoin should be worth more than $1,710,000/unit just through the law of supply and demand( taking into account that each of these millionaires only want to buy 1 BTC). In this calculation aren't included the considered lost BTCs ~4M.

That's an interesting example, thanks for sharing! Bitcoin's scarcity definitely does drive demand, and also combats inflation. The fact that it happens to, as you said, meet the specifications of a global mainstream currency in terms of functionality is also important when it comes to mainstream adoption.

JessicaVL

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Quote from: Darker45 on November 07, 2019, 05:24:45 AM

It is indeed a factor. The impression that it sends to people is that it is not unlimited and that after years and decades the total supply will remain the same. This is in great contrast to fiat which is unlimited and even created or printed out of reasons that are either hidden or beyond the comprehension of the majority of the common folks.

In addition to the limited total supply of Bitcoin is the fact that a significant chunk of it is already lost or forgotten beyond recovery, and that the mining reward is also reduced into half every four years. Scarcity is obviously playing a vital role in the rise of Bitcoin's price value.

You're absolutely right - scarcity plays a huge role in combatting inflation. Which is one of the reasons why Satoshi Nakamoto decided to develop it in the first place (global recession). It'll be interesting to see what happens when mainstream adoption occurs - how will demand influence the price then?

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Quote from: lobat999 on November 07, 2019, 04:33:49 AM

Of course! Bitcoin's limited supply was designed to influence adopters perception since from the beginning of its inception - that it is bound to be very rare according to an estimated predefined time frame.

An analogy for this is that we could liken Bitcoin's supply to very rare mineral like Diamond - assuming it has also a limited supply of 21 kilos and knowing that it will reach its max supply in due time, then most of us would likely expect its price will go up due to its rarity and would do our best just to get a little bit of it!

Now this assumption would all be realized as long as there is great demand for it, because without demand, its price will eventually fall.

Here are related discussions which I think are relevant to the OP:

Stock To Flow Model: Modeling Bitcoin's Value with Scarcity
wrote a paper about the convergence of bitcoin toward the stock-to-flow model

Absolutely! Naturally supply drives demand, and Bitcoin's limited supply does have influence over the price. As we reach the total supply cap, it's very likely that Bitcoin's price wil climb. We're currently at about 18 million, so let's see what happens.

Vertex_ICO

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Quote from: Herbert2020 on November 07, 2019, 03:27:49 AM

21 million cap in my opinion is not about scarcity and price but instead it is more about having a clear maximum supply and a clear predefined plan for distribution of that supply. this design was specifically chosen to fix the problem with fiat system where there is absolutely no cap and no predefined plan of supply creation. the government can print as much money as they like and that causes inflation among a lot of other economical issues.

as a side product of that, we get the scarcity and with a limited supply and an increasing demand we get the rising price. of course it should not be forgotten that the demand is an important part of that rise otherwise we have altcoins with much smaller supply that are not only worth less than bitcoin but they are losing value as time goes by even though they are supposedly scarce too.

You definitely have a point there. Scarcity definitely does combat inflation, and we know Bitcoin was invented as a response to the global recession in 2008 (as well as for other reasons). With that being said - you're spot on in that we have to acknowledge that demand drives up the price.

Topic: Scarcity is one of the leading factors of Bitcoins value (Read 764 times)