That's right. I quite amplify inflation factor but only because most people ignore it (to my surprise). You're right, it's not the only factor, but it's one among the primary factors.
The curious thing is that I perceive "most people" thinking like you.
For example, I don't understand why so much people argues that bitcoin is scarce, since there are a lot of (even better) cryptocurrencies. And this is just the beginning. Maybe btc will have some value for historical reasons?
Hmm, finite supply of money is something fundamental for healthy economy and for motivation of people to do something. It's similar to putting water out of boat. When you know that no matter what you do more water is incoming you will eventually loose motivation for your effort. But if the water is finite (there are no leaks) your motivation to pour water out is much better. Scarcity of Bitcoin is one of the pillar of Bitcoin, for me the most important. Our current economy is quite the opposite as no matter how you try, they always print more to diminish effect of your effort claiming false dogma that without inflation (breaking scarcity) it cannot work which is utter lie. Bitcoin is scarce that although it's inflationary its going to zero and there is "only" 22 millions of BTC units. So in this paradigm everyone holding one Bitcoin owns very scarce asset as only 0,3% population can hold more than 1 BTC. There are better crypto-currencies, true, and there might be shif of valuet, but real value of crypto is where most people believe it is. So yeah, it's just faith built in time, nothing tangible. Bitcoin will have to fight to keep its status in time.
That's right. I quite amplify inflation factor but only because most people ignore it (to my surprise). You're right, it's not the only factor, but it's one among the primary factors.
The curious thing is that I perceive "most people" thinking like you.
For example, I don't understand why so much people argues that bitcoin is scarce, since there are a lot of (even better) cryptocurrencies. And this is just the beginning. Maybe btc will have some value for historical reasons?
Hmm, finite supply of money is something fundamental for healthy economy and for motivation of people to do something. It's similar to putting water out of boat. When you know that no matter what you do more water is incoming you will eventually loose motivation for your effort. But if the water is finite (there are no leaks) your motivation to pour water out is much better. Scarcity of Bitcoin is one of the pillar of Bitcoin, for me the most important. Our current economy is quite the opposite as no matter how you try, they always print more to diminish effect of your effort claiming false dogma that without inflation (breaking scarcity) it cannot work which is utter lie. Bitcoin is scarce that although it's inflationary its going to zero and there is "only" 22 millions of BTC units. So in this paradigm everyone holding one Bitcoin owns very scarce asset as only 0,3% population can hold more than 1 BTC. There are better crypto-currencies, true, and there might be shif of valuet, but real value of crypto is where most people believe it is. So yeah, it's just faith built in time, nothing tangible. Bitcoin will have to fight to keep its status in time.