How does Bitcoin’s scarcity impact its long-term value?
Bitcoin’s scarcity is a key factor in its long-term value proposition. With only 21 million coins ever to exist, Bitcoin is designed to be deflationary. This contrasts with fiat currencies, which can be printed indefinitely, leading to inflation. As Bitcoin adoption increases, its limited supply may drive prices higher due to demand outpacing availability. Historical trends show that as Bitcoin’s circulating supply decreases (due to lost coins and long-term holders), price appreciation often follows. Investors interested in tracking Bitcoin’s scarcity-driven price movements can check btc price live for real-time updates. Understanding Bitcoin’s scarcity and demand dynamics is crucial for those considering it as a long-term investment.