Hi Frederick, thanks for your input

Scarcity is not by itself what gives value to bitcoin, it is the blockchain, the algorithm, the decentralization, and the network that gives it value. Scarcity just makes it appreciate faster.

I can release a very scarce token (in fact I have) and its value will be zero because the demand is zero.

Scarcity in the money supply doesn´t mean scarcity of goods in the market, in fact, the opposite is true. Venezuela has an abundant currency but since the value is zero it can´t provide available goods and services. A scarce currency that becomes very valuable attracts an abundant market of goods and services. Technology and bitcoin are deflationary forces and they allow poor people to afford products that were out of reach before.

I agree with you on the energy part. Bitcoin is a giant battery that can collect stranded and clean energy from all over the world and translate it into economic value. Solar will be a big part of it but not the only one, geothermal energy is also green and abundant and that is being used in Iceland and other places.

China has a very centralized economy but at the same time companies are left alone to develop their entrepreneurial spirit hence their success. The government doesn't interfere too much with what they do unless they threaten their power. Fully centralized economies in which the government directly manages companies don't work i.e. the Soviet Union.

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Author of ´Bitcoin For Mere Mortals´ available @Amazon. Subscribe and drop me a line and I’ll send you a copy for free, no strings attached.

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Alberto Guerrero

Alberto Guerrero

Author of ´Bitcoin For Mere Mortals´ available @Amazon. Subscribe and drop me a line and I’ll send you a copy for free, no strings attached.

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