Quote from: ChrisPop on Today at 08:27:13 PM

Bitcoin supply is limited by design OR in other words it is "scarce by design". The network incrementally contributes to the value of this cryptocurrency. As time passes and the network is proven to be robust, people will gain more trust in it. Thus I'd say the correct sequence is: Scarcity --> Network --> Price.

Pushing this mind process a step further:

- The network doesn't lead to scarcity;
- Neither scarcity build the network (a continuous supply would have, probably not as fast, but still)

Then both the scarcity and the network actually lead to the price.
Can also eventually add the utility on top of it.

So Network + Scarcity + Utility = Price

Can we mathematically price each of these components individually ?

Network = Active addresses (AA)
Utility = Transactions (Tx)
Scarcity = Supply (S)

If we consider the time dependency, then it should be a derivative function:

d(AA)/dt + d(Tx)/dt + d(S)/dt = dP/dt

The trick is in Tx, as there is a good volume of it off-chain (Centralized Exchanges transactions).

Decentralization being a necessary and required (boundary) condition for public chains: If not meet then P --> 0