Are There Variables In The Scarcity Of BTC❓

in LeoFinance3 months ago

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Will BTC continue to increase in value because of its scarcity value?

As the saying goes, "Rare is precious", this is also one of the important reasons for many BTC supporters to hype BTC. Of course, I personally do not agree with this view, because although BTC seems to have a fixed amount, there are thousands of cryptocurrencies on the market. Data shows that there are currently more than 5,000 cryptocurrencies, so it is not very appropriate to use scarce as the most valuable in the field of cryptocurrency.

Of course, this does not affect people's enthusiasm for speculating BTC. As long as BTC still persists, the total amount of 21 million is a hot spot for speculation. And due to the unique design of BTC, decentralized BTC has a very big disadvantage. BTC users, like other Internet users, will forget their account numbers and passwords for various reasons, resulting in inability to enter BTC wallets. This will result in a part of BTC that cannot be retrieved due to technical reasons, thereby increasing the scarcity of BTC.

Although BTC is different from traditional Internet platforms, BTC users also need account numbers and passwords, but BTC uses addresses, keys, and passwords. However, traditional Internet platforms have a central database. Even if users lose their account numbers and passwords, they can be retrieved in the background through identity information. But because BTC uses public blockchain technology, in some special circumstances, there is no way to retrieve the account and password. According to the prediction of blockchain analysis company Chainalysis, about 20% of the existing BTCs in the world cannot be retrieved for various reasons.

Mircea Popescu's accident will make people pay attention to the increasing scarcity of BTC

In fact, in addition to the impact of changes in the total amount on prices, BTC will also be affected by many external factors, such as policy changes in various countries. If other external factors are removed, BTC will indeed continue to increase in value due to the decrease in the total amount. Of course, these need to be established on the basis that BTC will not depreciate due to other factors. Last week, Mircea Popescu, an early supporter of BTC, had an accident on a beach in Costa Rica. This news has a great impact on BTC.

Although Mircea Popescu’s accident is regrettable, the news is that it may actually be good for BTC and may stimulate BTC's price growth. Know that Mircea Popescu is not only an early supporter of BTC, but also one of the founders of the cryptocurrency exchange MPEx. MPEx, established in 2011, claims to be one of the earliest cryptocurrency exchanges in the world. It can be seen that Mircea Popescu and the organizations behind it have a great influence on BTC.

Although MPEx has been closed, many people believe that Mircea Popescu still holds a large amount of BTC, and it is said that he is also one of the largest holders of BTC. Some people even speculate that Mircea Popescu holds nearly one million BTCs. Of course, the number of Mircea Popescu's real holdings is still a mystery, just like the whereabouts of his BTC holdings. The appearance of this news is more like an introduction, which will make more people realize this and pay more attention to the potential appreciation of BTC.

BTC's scarcity is variable, and it may be overtaken by other cryptocurrencies

If this problem of BTC cannot be effectively solved, the total amount of BTC will eventually become less and less, and the scarcity of things will become more expensive. This will also increase the determination of BTC investors to hold BTC for a long time, which is conducive to the long-term stable development of BTC. What BTC needs most now is time. Time is a key element in the establishment of the BTC consensus system. After all, BTC is still too young. However, the market does not necessarily give BTC more time to develop. Some countries and regions have begun to intervene in the development of BTC, which is very unfavorable for BTC.

Of course, this problem of BTC also needs to be solved. While users cannot retrieve their account and password, it also means that they cannot prove their ability to have a BTC account. In case the BTC account and password are not forgotten, but lost for some reason, unnecessary disputes and losses may also be caused. This will make it more difficult for BTC investors to recover their losses. After all, not all investors have the ability to recover lost BTCs. Of course, these theories are based on the fact that things are scarce. In fact, the total amount of BTCs unchanged may be just a joke.

In addition to technical risks in the future, there may be countless kinds of cryptocurrencies to overtake, including official digital currencies. The future of BTC is full of variables, and the large fluctuations in its price have proved this. The risks and benefits of investing in BTC are huge, so they are not affordable for ordinary people.

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