We are used to digital things being abundant. You can copy a photo, a song, or an email a million times for free. But bitcoin scarcity changed everything.
Bitcoin was the first time in history we had something that was both digital AND scarce.
You can copy the Bitcoin software, but you cannot copy the Bitcoin currency. If I send you 1 BTC, I no longer have it. It is gone from my wallet and moves to yours.
This mirrors physical scarcity, like gold. You can’t copy a gold bar.
But Bitcoin is arguably scarcer than gold.
If the price of gold goes up, mining companies dig faster and find more. The supply increases.
If the price of Bitcoin goes up, the supply schedule stays exactly the same. No matter how much energy is spent mining, the network only releases new coins at a specific, predetermined rate.
This absolute bitcoin scarcity is why it is becoming the preferred store of value for the digital age.