"There is a lot of misunderstanding on how money works. Many in the Bitcoin space think that scarcity of Bitcoin alone determines the price of Bitcoin. This is utterly misguided and wrong.
The total money supply is not only Bitcoin, but all money. If there is a substitute, then this is a part of the money supply. The scarcity of Bitcoin to price is a function of use.
In economics, this was the issue that Ricardo and Marx never grasped, that
is, the diamond/water paradox. The fact that something is scarce is not enough to make it valuable. There are small vineyards who produce under
1% of the amount of wine made by Moet and yet, some of these earn under 0.75 Euro a bottle. Clearly, being scarce does not help increase the price of something that has little use."
Pag. 97
Satoshi's Vision:
The Art of Bitcoin.
By Craig Wright
August 2019
https://t.me/theArtofBitcoin
https://www.amazon.com/Satoshis-Vision-Bitcoin-Craig-Wright/dp/1688735925
The total money supply is not only Bitcoin, but all money. If there is a substitute, then this is a part of the money supply. The scarcity of Bitcoin to price is a function of use.
In economics, this was the issue that Ricardo and Marx never grasped, that
is, the diamond/water paradox. The fact that something is scarce is not enough to make it valuable. There are small vineyards who produce under
1% of the amount of wine made by Moet and yet, some of these earn under 0.75 Euro a bottle. Clearly, being scarce does not help increase the price of something that has little use."
Pag. 97
Satoshi's Vision:
The Art of Bitcoin.
By Craig Wright
August 2019
https://t.me/theArtofBitcoin
https://www.amazon.com/Satoshis-Vision-Bitcoin-Craig-Wright/dp/1688735925
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