scalability – Is Bitcoin really scarce?


I am a beginner to crypto/blockchain, however I am very excited concerning the prospects. Given how passionate of us could be concerning the topic, I wish to be very clear that I am not attempting to indict Bitcoin or cryptocurrencies on the whole. I am attempting to grasp how the entire thing works.

My understanding is that there’s a restrict on the variety of Bitcoin that may ever exist; 21 million bitcoin. Subsequently, one of many deserves of Bitcoin as a retailer of worth is that extra Bitcoin cannot be “printed” just like the Fed “prints” {dollars}.

I’ve additionally realized that one can trade Bitcoin for different cryptocurrencies with restricted issuance like Litecoin. And, presumably, nothing prevents one other cryptocurrency from being created with comparable guidelines…and many others.

So, is Bitcoin – as a retailer of worth – actually restricted? If all of the currencies like Bitcoin are interchangeable, what’s the efficient distinction between them? In 10 years, why do I have to have worth saved in Bitcoin vs. Litecoin vs. some other equally constructed asset? In idea, should not all of the capital circulate evenly into all these currencies? Once more, assuming they’re interchangeable.

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