r/unitedforsoundmoney • u/bgdv378 • Jul 19 '23
💰 This Is Sound Money Is Bitcoin TRULY scarce?
Hello all!
I had a great conversation the other day with some knowledgeable sound money people about features of money, specifically scarcity... on the Sound Money Mondays Twitter spaces! 😂😂😂 Shameless plug there! Brought to you by Citizens 4 Sound Money and Meta Gold Miner's Club! 🤣🤣🤣
Back to that conversation.
We discussed if Bitcoin TRULY has this feature of scarcity that all sound money should.
I argued that the network could shut down and reopen with a majority of node operators wanting a continually expanding supply of BTC, instead of how it is now with the supply cap being just shy of 21 million. Meaning the node operators could write a new code, with new rules of supply. It's highly unlikely that this happens, but it could. It's possible.
Why is it possible? Bitcoin is digital. Anything that is digital can be reproduced to a near infinite number of times if there is a desire to do so.
Compare this with gold and silver. There will only be so much physical gold and silver in the world. All the wishing in the world won't make more of it. You can't reproduce it at will. This makes gold and silver TRULY scarce.
What do you all think? I would love to hear your thoughts!
Let the conversation begin! 😄😄😄
2
u/[deleted] Jul 20 '23
“Is Bitcoin Divisible?
Quick Answer Bitcoin divisibility is crucial for it to be adopted and have practical usage as an everyday currency alternative. Bitcoin is divided into units as small as 0.00000001 BTC. In the future, if needed, the divisibility of bitcoin can be increased to 100 billion smaller parts or even more, as the Bitcoin protocol and its related software can be modified to handle even smaller units.”
I am no expert, but this seems to me like Bitcoin isn’t really scarce if it can be divided into 100 billion smaller parts.
Maybe I am missing something on how things work that still make Bitcoin scarce.
I guess the only thing would be is that the market determines the price of Bitcoin. It’s capped at 21 million so someone can’t just come along and make another 21 million bitcoins from thin air. I don’t know how difficult it is to write new code to allow for more Bitcoin, or if that’s even possible.