Why Is Bitcoin So Valuable?
The demand for bitcoin is increasing, whereas the availability of new supply is shrinking, with the size of each block reduced by half, on average, every four years and the final bitcoin to be mined somewhere around the year 2140. Indeed, unlike most other produced goods, the rate of supply of new bitcoins cannot increase in response to spikes in demand.
This is a very common misconception. "New supply" is called
production. The price depends on
supply and demand, and not
production and demand. While
production is halved every 4 years approximately, the
supply is always increasing towards the 21 million limit.