Topic: The believe that because of Bitcoin limited supply the price will rise is a myth - page 2. (Read 488 times)

This iA true. If the demand is high,what will hapoen is that the price of a prodict will rise as well. Since the demand is high, and a lot of people will also be interested in bitcoin.This is a great oppoeftuniy

Any finite number of things, in the end it will have a reasonable price. So BTC will definitely have a reasonable price in the end.

Everyone knows that. Even if the supply of a certain commodity/stock is so finite, as long as no one wants it, or a large number of people don't really care, there wouldn't be any value to such. You must have unlocked the logic behind supply and demand then, because a limited supply alone wouldn't permit insanely high prices, you need other things to meddle with it.

So yeah, the law of supply and demand isn't a myth at all, but rather a simple logic.

I've been on this forum long enough to know not to engage in incoherent rants. Clarify your position. Are you arguing that scarcity doesn't affect the price or that Bitcoin is not really scarce?

bloody hell is reading comprehension no longer a thing?

If potatoes suddenly became extremely scarce, their prices would skyrocket because they would become luxury food similar to truffles. Scarsity itself doesn't create value, but it amplifies the value of something that already has some utility.


You're mixing up different things here. If we're talking about medium of exchange, then the costs of using it are a combination of network fees, exchange fees and price fluctuations and in some cases it can already be lower than traditional payment methods.

This is a basic law of supply and demand in the economics. Of course, prices will vary in accordance to the circulating supplies in the market.

I do not think the Bitcoin price hike could be a myth because it has shown the world that it can reach its price farther than we thought in the final quarter of 2017 that reaches over $ 20K USD.

And I can not predict how much Bitcoin will be needed in a day, month, or decade, we can only be sure that its scarcity will be a major factor in determining its value.

I believe that bitcoin will continue to potentially grow in the coming years to provide more profit for investors.

if its too expensive to trade. and has no merchant usage.. then its demand dies.
check out all the crap coins that cant buy a loaf of bread(random example) in the real world. but all have 21mill coin cap

scarcity is meaningless without utility/function.
emphasis check out all the crap coins with 21mill coincap

dont rely on scarcity as bitcoin saviour of value. otherwise your willing to say kill off utility/function because scarcity will push bitcoin up. reality is it wont. scarcity is meaningless without function/utility

scarcity is about supply.. function/utility drives demand. supply does not drive demand

oh yes the world is running out of numbers and digits and I am selling pugs from my left nostril
because they are a finite resource and will boom in value when I die.

Never mind that each fork double the money supply, adds to inflation, just buy my pugs  

fxsurfer, you really, really need to study fundamental economics.

Let's make some essentials cristal clear.

IF the supply of bitcoin remains unchanged
IF the demand of bitcoin remains unchanged

then over time the "exchange value" to, say, the US dollar WILL indeed change, with a unit of BTC becoming worth "more" units of dollars. That's for the fundamental truth that the value of a unit of dollar, over time, decreases (rapidly).

Now, that the supply will not increase, but rather decrese, is a well established FACT, it will not change.
One uncertainty is wether the number of users and uses of bitcoin will increase, stagnate, or decline. That will, of course, impact its growth in value.

While we cannot predict how much Bitcoin will be Worth in a day, month, or decade's time, we can sat for certain that its scarcity will be a major factor in deciding its value. Obviously if there won't be any demand at all, it won't be Worth any money at all... but this is a somewhat obvious yet unlikely scenario. not really anything you can be insightful about.

So, you're either being completely lapalissian, claming that if there is no value for bitcoin it won't be Worth anything, or you're being--frankly--ignorant in claming that scarcity alone isn't a key value driver.

commodities have a purpose. a commodity is a raw material used to create other products.
wheat can be turned into bread,.. oil can be turned into fuel/plastic

now this is the confusing part for some.
GOLD sits on 2 markets. commodities AND asset.
golds commodity value is its raw material state to the create electronics and jewellery

bitcoin does not share golds commodity value. bitcoin is not a commodity, emphasis bitcoin is not a commodity

now because gold has a commodity value, this gives it a value. and combining golds commodity(raw material) value with golds scarcity. and golds utility/function value as part of a circuit/jwellery(end product) gives gold an asset value

again. bitcoin has no commodity value. and thus it only holds value due to scarcity ethos/utility(trading) and merchant use for bitcoin to be an asset. emphasis bitcoin is an asset
emphasis. without real world merchant use. bitcoin loses its main aset value. (remember bitcoins first price push due to bitcoin pizza, then silkroad, then things like bitpay/coinbase shopping cart tools)

but if we take away bitcoins ethos/function by making it the expensive to use (tx fee onchain / high cost to open/close 2nd layers) then it loses its utility.. if its no longer useful to buy things in the real world... all thats left is scarcity..

so lets talk about scarcity alone
now.. i have a dog that does 2 poops a day. in 2 years it will be trained to do 1 poop a day. and as it gets older, it starts getting constipated and only does 1 poop every couple days.
in its life thats about 2500 bags of dog poop will ever be created by my dog.. wh wants some.... no one.. but wait. its scarce. so why no demand(sarcasm)

in short. scarcity alone is meaningless. something is not an asset just by being scarce.

demand due to scarcity alone is meaningless. there has to be function/utility of the item for there to be demand. otherwise its just crap..
as shown by all the crap coins that get dumped once people realise theres no utility. even if the coin has faster tx times and lower fee's there is no real world function/utility

bitcoin had/has many utility/functions. but slowly its losing those abilities. so dont always rely on 'scarcity' as the sole thing that will keep bitcoin prices up.. because otherwise you might well just be holding a bag of poo..

we need to concentrate on not letting devs destroy bitcoins ethos. not letting regulators turn it into fiat. not let users turn it into a gimmick via sounding like a ponzi get rich scheme.

well it is a good point of view and I was thinking recently that nowadays we barely use cash with the systems provided by banks and it is a matter of time for governments and banks to copycat all the advantages of btc so what then, if there is a more secure coin why should people buy something which is not backed by anything.

The prices of the goods you mentioned didn't rise 200,000,000 percent from their utility value, while the Bitcoin's prices did. Regarding scarcity, it is true that scarcity is a factor that drives the price up, but the utility provided by bitcoin is not scarce, since people can create an infinite number of digital currencies that will serve as means of exchange. If 21 million grains of sand are put into a box and a limitation is set that this is the maximum number of grains that can be put into the box, this artificial constraint won't make these grains scarce or valuable. This is because people can create their own boxes, fill them with sand and set their own quantitative limitations. Why would people pay 10,000 dollars for a grain of sand in your box if they can make their own boxes with sand in them? Likewise, why would people pay 10,000 dollars for numerical values in your digital box if they can design their own digital boxes with numerical values in them? You people live in a fantasy world. When you wake up, it will be too late.

No, I don't consider bitcoin rise in price could be a myth since it had shown to the world that it can reach it's price further than we thought in the last quarter of 2017 reaching almost $20K USD. When people are more interested to put investment in bitcoin then demand could go up and this will trigger on the price value to shoot up. I believe that bitcoin will continue to potentially grow in the coming years to come giving more good profit to investors.

Then where does bitcoin derive its value from? And why are people buying it? It's basic supply and demand. I'd look at bitcoin more like an asset than anything else. It is like owning digital gold. Bitcoin may not have intrinsic value like gold or whatnot but there is still a finite supply of it and that's what gives it its value because people believe it has worth.  Anything is only worth what people are prepared to pay for it and supply and demand factors into that. A rare pokemon or baseball card isn't really any different from a bog standard card of which there are hundreds of thousands but it's because of its scarcity/rarity and because people are prepared to pay good amounts of money for it that it has worth. Same with bitcoin.

His explanation is true on top of that remember that potato can reproduced by plant so that's why it is not comparable to bitcoin. But bitcon is can be compared to oil since we all know that oil(gasoline) is limited because there will come a time that these commodity will deplete.

Throughout all your posts, you have been quite repetitive about the term "tangible" There is utility/scarcity, medium of exchange/store of value. Not just limited supply, decentralized digital scarcity, yeah intangible. Now basic economics, anything that is both useful and scare tend to have value, not a myth. Does Bitcoin's utility have satisfying power? Yeah, again not just any medium of exchange, a peer-to-peer censorship-resistant payment network. Now spending enormous amounts of money, add utility + scarcity, you would have a decentralized medium of exchange that retains purchasing power. A few altcoins does have real utility and can be a good medium of exchange, but do lack decentralized digital scarcity and in that sense Bitcoin is far ahead and assuming Bitcoin becomes a more efficient payment network with very low fees then there is no reason to believe why utility/scarcity driven demand wouldn't lead to price increase.


Potato – tangible – Satisfying human needs.

Bitcoin – intangible – Satisfying human needs.

Guess your definition of human wants is a bit messed up, not necessarily tangible, and terms like decentralization, peer-to-peer, censorship-resistant, privacy, economic freedom does include in human wants.

Why did you pick example of an potato ? That is the utility which has an alternative,you know people can survive just fine without consuming a potato.It is not an essential part of livelihood.Take water of example,what if the entire Earth dries up and there is literally no water supply ? Would you buy a car or rather drink water ? Not saying bitcoin is that essential but in the word  it has it's own hardcore followers.

If they can predict that their money is going to get doubled after some time,they will never lose a chance to buy bitcoins even when the supply is low.You don't see the point here,it's not about bitcoin at all,it's about the real value it holds.

if anybody said just because of limited supply price will rise, then they were making a mistake. but my guess is that you misunderstood them or probably read half of their statement!

the reality is that there is another part: demand.
with increasing demand while having a limited supply price will rise and that is what will happen to bitcoin.


potato is not a useless thing. it is useful so if the supply of it dropped, the price of it will grow. that is basic economy, ask anyone!

let me give you a real live example to help you understand.
during wars, like world war, nobody cares about cars. what they are desperate about is food, and potato actually becomes important and expensive. you may even exchange your luxury car with a sack of potato when you are dying of hunger because the supply of potato and food in general during war is extremely low.