Let Me Explain:
- 📉 Prices Reflect Supply and Demand: Prices are just exchange rates; when you swap USD for goods, you're trading one thing for another.
- 💵 Unlimited USD Supply: The Fed can create dollars with a keystroke—no real resources required. This makes USD abundant and less valuable over time.
- 🏗️ Goods & Services Are Scarce: Unlike USD, goods and services require time, effort, energy, and materials to produce, making them inherently more valuable.
- 🔄 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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🔗 In Contrast: Bitcoin’s Scarcity
- ⛏️ Bitcoin Has a Fixed Supply: Only a limited amount of Bitcoin can be produced every 10 minutes, with the rate halving every 4 years.
- 📉 Decreasing Bitcoin Issuance: As time goes on, Bitcoin's supply grows slower, while we get better at producing goods and services.
- 🛑 Bitcoin Hoarding Effect: Many holders keep their BTC, anticipating rising purchasing power, making it even scarcer in circulation.
💡 The Big Picture:
- 🔄 Goods & Services vs. BTC: As the supply of goods rises and BTC supply falls, the prices of goods in BTC terms will trend down.
- 💸 USD Inflation vs. BTC Deflation: Dollars can be printed endlessly, inflating prices. Bitcoin’s capped supply drives its value higher over time.
- 🏡 Long-Term Value Shift: A house's price in USD will keep rising, but in BTC terms, it will fall, highlighting Bitcoin’s superior scarcity and value retention.
🌟 Bottom Line: Everything becomes cheaper in Bitcoin terms because BTC's supply is capped while everything else keeps growing. 🪙📉 #BTC☀ #inflations #scarcity $BTC
