How Does the Scarcity of Bitcoin Influence Its Long-Term Store of Value Proposition?
Bitcoin's scarcity is guaranteed by its hard-coded supply limit of 21 million coins and the predictable reduction of new supply through halving. This deflationary nature, in contrast to the inflationary policies of fiat currencies, is central to its store of value proposition.
As demand increases while supply growth diminishes, the asset's price is expected to rise over the long term, making it an attractive hedge against inflation.
