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Honest question: why are bitcoins scarce? I understand that the supply of real bitcoins is limited, but what is preventing all of the other cryptocurrencies fro
by nimblegorilla 13y ago
Honest question: why are bitcoins scarce? I understand that the supply of real bitcoins is limited, but what is preventing all of the other cryptocurrencies from taking off?
- jnbiche 13y ago>what is preventing all of the other cryptocurrencies from taking off? Nothing at all. There have been dozens of "competing" digital currencies for several years now. Litecoin came along in early 2011. And it's extraordinarily easy to change Bitcoin to other digital currencies (much easier than USD <> digital currencies). So obviously being first counts for a lot here. The network effect is strong.
- informatimago 13y agoIt is an artificial scarcity embedded into the system AFAIK. Or is there something that forces the null prefix lenght to change? As an artificial scarcity, it strikes me similar to the king of an island who would collect all the shells, and distribut only a few of the as money. Any would be king could start to collect square shaped pebbles, and do the same. At least, the one who would choose to hoard coconuts would provide for money something that can be used, that has some intrinsic worth.