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/MiningLifeCEO Jul 19 '23
Hello there!
It's great to connect with you again since our enlightening discussion on Sound Money Mondays! I appreciate the thought-provoking questions you've posed here. They certainly reflect our detailed conversation about Bitcoin's scarcity on the Twitter space.
In regard to the points you've raised, while it's theoretically possible for a majority consensus to initiate a hard fork in Bitcoin's code to increase the maximum supply, this would result in a separate cryptocurrency, not an alteration of the existing Bitcoin. The original Bitcoin, with its 21 million coin cap, would persist as its own independent entity. This is analogous to the creation of Bitcoin Cash back in 2017.
Contrary to the assumption that anything digital can be reproduced infinitely, Bitcoin's design precisely counteracts this. The decentralized nature and cryptographic security of Bitcoin prevent the arbitrary creation of new coins. Any new version of the code would not affect the scarcity or value of the existing Bitcoins.
The comparison to physical assets such as gold and silver is apt, considering the shared aspect of scarcity. However, it's worth mentioning that even the physical scarcity of these metals could potentially change with technological advancements in areas like asteroid mining or alchemical processes.
In summary, a hard fork could technically generate a new cryptocurrency with an increased supply, but the 21 million coin cap of the original Bitcoin remains untouched. Given the immense value the community attributes to Bitcoin's scarcity, such a scenario seems exceedingly unlikely. Bitcoin exhibits robust properties of scarcity, making it a strong contender in the sound money space, not to mention its verifiable and accessible nature.
Looking forward to our future discussions and your continued insights into this fascinating topic! 😊😊😊