Investors keep wondering about the future of virtual currencies, most of all Bitcoin. Alena Vranova, head of strategy at cryptosecurity firm Casa, agrees that Bitcoin is volatile, but she's positive about its potential.
Scarcity can mean different things to different people.
I like to take the bull by the horns: Bitcoin has a hard cap.
And that is a very rare aspect.
Gold could be called scarce but the higher it's value would go the more natural deposits become economically feasible to mine.
We could even go into space at one point where it would be available plentifully compared to what's available on earth.
Bitcoin has a hard cap of 21 million.
And most of these are mined allready.
The fun thing is the more people want to own a share the higher the price will go.
Just look at its history.
We are getting close to the point where the value of a, whole, Bitcoin will be so high we are going to express it in smaller units to be practical.
When this continues, no guarantee, and Bitcoin will suck in most wealth and some where we will express it's value in Satoshis, the basic unit.
The nice thing is we can easily expess it's value in even smaller dominations like is being done on the LN network.
Some tend to argue that expressing it in smaller dominations is the same as creating more Bitcoin but this is a basic mistake.
We don't add more bitcoin, and by that diluting the value of existing Bitcoins, we express it's value in smaller dominations because the value of the previous used domination has just become to big to be useful.
In this respect Bitcoin is rather unique, no other form of money is hard capped, and the closest form of sane money can't just as practical being expressed in smaller dominations because soon after being close to a gram it's going to by physically impractical to use it anymore.
While for Bitcoin it won't be an issue to keep going to smaller dominations without limits unless we run out of expressions to give it a name....
We could express the whole world economic value in one Bitcoin or for that matter even in one Satoshi, it wouldn't be a problem, it would only mean we would have to go to smaller dominations to be able to express something with a current value matching one dollar.
That's why lost Bitcoins are no problem, it only makes the remaining Bitcoins worth more.
It won't be an issue if we would need to express it's value in Satoshi or smaller dominations, it would just mean your share would be worth a lot!
Just be happy you got involved in this time we are expressing its value per Bitcoin, it's pretty clear soon we will be expressing it in a smaller domination because one Bitcoin will simply be worth a lot more.
By the time we are talking about value expressed in Satoshi in daily life, one Bitcoin will be close in the magnitude of a million dollars.
It's just up to you wetter you would still have a whole Bitcoin or not.......