Post
Topic
Board Economics
Re: Bitcoin or gold?
by
abreastabran
on 27/03/2018, 08:57:40 UTC
One key factor where Bitcoin truly shines is its rarity. While gold is rare, Bitcoin is much rare because there is a limited amount of it that can come into existence. The software stops producing beyond that limit. This is crucial to understand because whenever supply is restricted, and demand is high, price goes up. This is economics 101. The higher the demand and the lower the supply, the higher the price will become.