Bitcoin’s ‘Best Asset’ (Fixed Supply) Shows Why It Will Never Be Money

Bitcoin’s ‘Best Asset’ (Fixed Supply) Shows Why It Will Never Be Money

Share to Linkedin Bitcoin BTC recently reached a 1-year high of roughly $31, 000. As the cryptocurrency gradually escaped lows of $16, 500 that prevailed when 2023 began, proponents of it surely breathed a huge sigh of relief. While also nodding knowingly. According to the BTC-converted, the fixed limit of 21 million quantity of the coin is what makes it real money. Don't you know, they can't "print" Bitcoin? Better yet, the fact that so many Bitcoin are locked away forever owing to forgotten passwords renders the coins in circulation even more valuable. Supply vs. demand and all that. Too bad the reasoning is utter nonsense. It's nonsense because value or a price isn't necessarily a function of supply and demand as much as it's a speculation about the price a market good is expected to fetch in the future. Which should be obvious. If a soaring price were as simple as limiting supply, then stock-market laggards would simply engineer reverse splits to juice their valuations. And achieve very little in the process. It's no different with money. The Swiss franc is one of the most circulated currencies in the world, while the Iranian rial at 0. 000024 of a