Artificial scarcity is trying to limit access to something which can not be limited. Once bits, for any purpose, are put in the right order to do something or

Artificial scarcity is trying to limit access to something which can not be limited. Once bits, for any purpose, are put in the right order to do something or represent something, the cost to replicate those bits to other parties is zero. In contrast with an automobile, even after it is designed, significant infrastructure (currently) needs to be built and exist to create another one. What you are paying for when you purchase a car is the PROCESS that went into creating JUST that ONE car you bought. Additional cars would not exist if the infrastructure didn't exist to create more of them (and then economies of scale come into play, making the car actually affordable). Bits do not have that limitation. Scarcity and want must exist in order to set a legitimate price. Artificial scarcity sets a price on something that isn't actually scarce. It is a (unfortunate?) side-effect of the market that potential buyers think that because something has a price, it must be worth having (ie scarce). I don't think there's actually anything wrong with basing a business on this, but don't be surprised when your customers realize you've been selling them something that should have a price closer to zero because there is infinite supply.