Ask 10 crypto investors why they buy Bitcoin. Most of them will answer that the supply of BTC is limited, so it is worth investing in it. Yes, there are really few Bitcoins, and the speed of their production is constantly decreasing. The last BTC will be mined around 2140. But this is not the key thing that affects its value.
Why is BTC scarcity not that important? Let's remember why Bitcoin was created in the first place. To do this, let's quote its creator: “Society needs a payment system based on cryptography, not trust, which would allow any two participants to transfer funds directly, without the participation of an intermediary.” The main idea behind the creation of Bitcoin was to develop a decentralized payment system that works quickly and securely, not a scarce asset that people must compete for.
Scarcity does not always add value:
Gold is considered one of the most scarce assets on the planet, but its price is lower now than it was 10 years ago. And if you bought gold in September 1980, your investment would only pay off after 27 years.
According to the latest data, world oil reserves will last for about 50-60 years, excluding “unproven reserves.” But oil prices are very unstable and sometimes even drop to zero (hello 2020). Plus, oil competes with the green energy industry, which has just begun to develop.
There are many rare paintings in the world that are over 100 years old. But they are not as valuable as paintings by Picasso or Van Gogh. There are many other reasons to value Bitcoin: decentralization, transparency, security, immutability and censorship resistance.
Repost so you don't lose
