Bitcoin Is Not Scarce

in LeoFinancelast month

Hey Jesscoiners

Bitcoiners often talk about the scarcity of Bitcoin, the "21 club", the limited supply and to an extent that is true. The idea of having something that very few can own is an attractive proposition in a world where the money is printed like never before, anything measured in money seems to be improving its value.

We've seen the price of stocks, crypto, precious metals, real estate and even collectables shoot up in price. Being scarce isn't the only attribute that drives up the price of something but it does help. As interest and demand improve for Bitcoin, the possibility of owning a single one becomes less likely for more people.

The unit bias tends to also push away users since people feel the need to want to own a WHOLE of something. Soon the fiat value of a Bitcoin will price out the majority of the market which without education could put a damper on demand.


The big satoshi secret

It seems like a secret at this point but a lot of people don't seem to be clicking that the Satoshi allows you to get into Bitcoin at any price. Bitcoin is not scarce when there are trillions of satoshis available to buy right now and well into the future.

Even if at some point the current satoshi break down is not enough, it can easily open up even more decimal points and we can trade on the milli-satoshi level.

Bitcoins scarcity isn't from the 21 million "hard cap" but the ability to reserve your position in the hierarchy of that 21 million.

Bitcoin is the treasury bond

As Bitcoin continues to grow I see it transitioning into more of a treasury bond, where it becomes the security used to collateralise the system. Where the satoshi provides liquidity in the same way the US treasuries are issued to back the creation of new US dollars.

The satoshi is the utility token of the Bitcoin network, it will be used to pay for network fees on the lightning network and dapps.

It will be used to transfer value between different assets, it is already used as a trading pair and in future, there will be even more interesting use cases.

The hard cap

As the hard cap starts to play more of a role in the availability of Bitcoin on the market with halving every 4 years the satoshi should become more valuable and play a bigger part in the ecosystem.

I think in future, we will even begin to measure the health of the chain by the velocity of the satoshi and how many times it turns around per year between wallets.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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I am thinking of when the stoshi will cost more then 1 USD, the people will regret why they have ignored the satoshi.....

I think even before then, I mean If BTC hits $67 000, then in my country a Satoshi would be equal to 1 cent, a value that is not crazy at all, which is why I am happily collecting as many sats as I can, people may ignore it and that's fine, just means more sats for me

Every time I read about Bitcoin's "scarcity", I think of some kind of marketing ploy.

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I think it’s a product of the BCH fork where BTC went to the store to value digital gold narrative and the scarcity buzzword was used to back it up

hmmm haven't thought like that!

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Lol you learn something new every day about Bitcoin, or well that's how its been for me

Bitcoin is not Scarce if we think in terms of it's availability in terms of smaller units, as u said dividing it into satoshi or even milli-satoshi will helps us make it available and affordable. I love the fact that it something is too expensive (compared to fiat currency) you can always divide it to make it more afforable or buy smaller units.
You will see a lot of games and other sites are paying reward in satoshi not bitcoin, simply because it more affordabel.

Agreed and the best part it doesn't devalue current holders position, in fact, it only makes it stronger and the harder the money becomes the more motivated people are to hold it, acquire it and work for it.

I think so too, we are seeing that with the lightning network, which I know has its issues and not decentralised enough but it is really promising

Just a jessie Today.

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Bitcoiners often talk about the scarcity of Bitcoin, the "21 club", the limited supply and to an extent that is true.

Not to some extent. IT IS TRUE.

There is no other conclusion. it is limited and finite - ergo, scarce.
Satoshi denominations doesn't alter the correct basic premise you make - that's just calculations.
..the rest is word salad matey...(imo)
(I'd always advise against using word salads, personally).