Nick Szabo says that scarcity is a state of “something hard to find or create, but necessary.” What are the forces that create scarcity?
A, the governments’ old money (dollars, Yuan) is an artificial and arbitrary scarcity, produced by the orders of those who control the governments.
B, The coins of Facebook and J.P. Morgan are also based on artificial and arbitrary scarcity.
Only in Bitcoin and in gold (but not in countries and firms) we have proofs of work that are not dependent on a mediating third party.
The degree of scarcity is: Scarcity = Flow / Stock
Only Bitcoin and gold are scarce because of natural forces: chemical forces in gold, The Fifth Force, the force of network in Bitcoin. Notice the growth curve of all organisms to the right, and to the growth curve of the bitcoin on the left. An amazing similarity that stems from one law: the rate of supply can not keep pace with cell growth in the organism (users on the net).
Scarcity is the supply flow to the inventory and inventory market. The golden rarity is 1.6% per year. Bitcoin rarely jumps in one stroke every 4 years, because of the half. In May 2020, the reward for reactors will be cut from 12 to 6 bitcoins, the rare ones will double, the supply will decrease, the price will rise by 2020–21, the mining will grow by 2021, the supply will jump, and then the price of the bitcoin will fall. This is the my theory of “the Botany of Bitcoin” that also explains what happens in 2022–2024, the fourth annual cycle (every year is a season) of the Bitcoin.
The crypto coins in the picture above are like organisms below: 1, they follow the same graph of size and metabolism. When a power of work is the optimal metabolism. 2, they are circulating in a predator and prey. 3, the greater dispersion of coins on both sides of the graph indicates a variance that results from the absence of a common ancestor (the POW sign is the financial DNA)
Effects of past and future pricing techniques and manipulations: a. The Influence of Manipulations: After the fall of the previous fall season, 2016, there were two slowdowns in the rise in the price of Bitcoin derived from the Ethereum. In the coming fall of 2020, huge powers such as Facebook, Binance and Telegram will try and raise billions of dollars from the suckers who have recoiled from the sudden rise in the price of Bitcoin. B. The influence of technology. In the picture, we see that introducing more powerful processors like the GPU does affect the speed of mining. Here a black swan of the type of quantum computer can hide.
market value = exp(14.6) * SF ^ 3.3
The fractal structure of the bitcoin. A dense line becomes a surface. A two-dimensional surface with holes becomes a one-dimensional line (left and right shape). A dense two-dimensional surface becomes inflated. The volume in which the holes are grown becomes an area (the middle shape). A line that aspires to an area strives from dimension 1 to 2 dimensions (fractions dimension 1.1. 1.2 … 1.99). A space that aspires to volume strives from 2 dimensions to 3 dimensions (fractions of dimension 2.1, 2.2 … 2.99). What happens to a three-dimensional volume that is compressed into 4 dimensions? Each dimension adds strength. The strength of a 5-meter-long cube raft increased by one more force relative to its area of contact with the water. 2 ^ 5 = 25, but 3 ^ 5 = 125, 4 ^ 5 = 625. The power lever of the energy and information networks in the organism is increased by 4, by a city of 2.7, by an organization of 2.25 (see link). And what about the Bitcoin? Is closest to the organism that is decentralized, and therefore is 3.3. The Bitcoin network is a network of energy exchange (mining) and information. The rareness of the bitcoin explained above is actually the metabolic rate of the bitcoin.