Let Me Explain:
- đ Prices Reflect Supply and Demand: Prices are just exchange rates; when you swap USD for goods, you're trading one thing for another.
- đ” Unlimited USD Supply: The Fed can create dollars with a keystrokeâno real resources required. This makes USD abundant and less valuable over time.
- đïž Goods & Services Are Scarce: Unlike USD, goods and services require time, effort, energy, and materials to produce, making them inherently more valuable.
- đ USD Prices Trend to Infinity: Since USD supply is limitless, prices of goods in USD rise because the currency becomes weaker over time.
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đ In Contrast: Bitcoinâs Scarcity
- âïž Bitcoin Has a Fixed Supply: Only a limited amount of Bitcoin can be produced every 10 minutes, with the rate halving every 4 years.
- đ Decreasing Bitcoin Issuance: As time goes on, Bitcoin's supply grows slower, while we get better at producing goods and services.
- đ Bitcoin Hoarding Effect: Many holders keep their BTC, anticipating rising purchasing power, making it even scarcer in circulation.
đĄ The Big Picture:
- đ Goods & Services vs. BTC: As the supply of goods rises and BTC supply falls, the prices of goods in BTC terms will trend down.
- đž USD Inflation vs. BTC Deflation: Dollars can be printed endlessly, inflating prices. Bitcoinâs capped supply drives its value higher over time.
- đĄ Long-Term Value Shift: A house's price in USD will keep rising, but in BTC terms, it will fall, highlighting Bitcoinâs superior scarcity and value retention.
đ Bottom Line: Everything becomes cheaper in Bitcoin terms because BTC's supply is capped while everything else keeps growing. đȘđ #BTCâ #inflations #scarcity $BTC
