|
asset classes like USD or Bitcoin ares suppose to be valuable because of "rarity"
inflation makes the USD less "rare", if everyone has $1,000 in their wallet, $1,000 doesn't buy you as much anymore and prices in the real world go up.
Bitcoin is valuable because it's designed to have multiple factors that contribute to the "rarity" mechanic.
in theory, when things become rare the price goes up. that's why Bitcoin is $70,000
the halving event makes minting new bitcoin harder and rare
the limited supply of 21,000,000 also contributes to the rarity. there is no inflation that is possible like the USA dollar, the USA dollar has inflation by about 6% each year.
there for Bitcoin will always be more valuable than the USA dollar because Bitcoin has rarity and the USA rarity mechanism is broken, because the government can print unlimited money.
|