Solving The Paradox
I believe the solution to the Bitcoin Price Paradox is inflation. Let’s say we have a hybrid crypto that has inflated supply. The price equation becomes:
Hybrid Crypto Price = Demand / Supply
In this case, the supply is never zero. So the price is never infinite. It is the way to get out of the Bitcoin Price Paradox. This is where an inflationary crypto is useful. Bitflate is an experiment in this direction. It has a moderately high inflation of 7%. It is the opposite of Bitcoin. Another way to think about this solution is through the philosophy of Yi Ching. Money Yin and Yang are Deflation and Inflation. They’re complementary to each other.
But isn't this excatly the idea behind bitcoins, to have a coin with a finite supply? I always thought bitcoins were created to find a coin that can't be manipulated and just be increased in supply whenever needed? Maybe I am wrong but I find this a pretty good idea. So when the supply goes to 0 and the demand is constant the price is going to rise. That is why I think holding bitcoins long term is such a great idea.