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> How does Bitcoin scarcity compare with the availability of other crypto products ? I think this question doesn't totally make sense, but I get what you're ge
by fossuser 5y ago
> How does Bitcoin scarcity compare with the availability of other crypto products ?
I think this question doesn't totally make sense, but I get what you're getting at.
BTC because of PoW and mostly first mover advantage (more mining network capacity, therefore more secure) has more shared value. A lot of the other crypto products are relatively insecure proof of stake with problematic on chain governance. The scarcity is not that there are lots of crypto products, but that there will only be a maximum number of BTC mined ever. The existence of Venezuela dollars doesn't really impact the value of USD - they're different currencies with different reasons for their value. Many others 'coins' are ERC-20 tokens on ETH and while they support their applications/create shared incentives they don't have nearly the same network size as BTC (or shared sense of value) so they're less robust. Those tokens are less like a currency and more like company stock (where the 'company' is the on chain application). There are some others on their own block chains that have interesting properties (ZCash), but the risk there is adoption.
Lots of commodities are traded, but gold has a shared store of value property above its inherent value for social reasons. I'd argue BTC has that for similar social reasons.
Ethereum is different because of its programmable smart contracts, it has a lot more potential as a protocol that applications can be built on top of (and we're seeing a lot of cool stuff here, DeFi - Uniswap, Compound, see: https://medium.com/dragonfly-research/what-explains-the-rise-of-amms-7d008af1c399 https://medium.com/dragonfly-research/what-explains-the-rise...). As a result I think its token has value and its more exciting than BTC, but it's a different kind of thing - BTC is simpler.
Doge is a joke - just straight speculative gambling, you might luckily make money (and it's fun to gamble), but there's no scarcity built in. It definitely has the meme aspect going for it though.
- tromp 5y ago> there's no scarcity built in There is. Unlike fiat, Doge is disinflationary, with the yearly supply inflation rate steadily going down towards 0. It's folly to equate scarcity with fixed supply [1]. [1] https://john-tromp.medium.com/a-case-for-using-soft-total-supply-1169a188d153 https://john-tromp.medium.com/a-case-for-using-soft-total-su...
- fossuser 5y agoAh thanks for the correction - I missed that bit.