Many of you might have read the blogpost by Plan B regarding the strong correlation between between price and scarcity for BTC.
https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25
For me it shows that BTC has no inherent value (even not an inherent expectation value based on the technology/possible applications in the future) other then the fact that BTC is scarce, and getter more scarce.
People want to buy BTC because of the Fear Of Missing Out (FOMO). The article presents strong proof for that.
However, that still might be a good investment argument, if you want to earn money at the cost of wasting energy (not un-common in the current society).
BTC shows that in a well established market, more scarcity (upcoming halving in BTC!), will increase price. Wether the thing that you buy has actual rational underlying value has become irrelevant. The fact that it’s scarce creates value in itself.
However, it also tells a story relevant for TF and its Tokenomics. Scarcity creates value, whether this is rational or nor.
TF tokens represent actual value. The proof of (valuable) work or ‘capacity’ proofs there exists an asset which is represented by the Token. On top of this there is a mechanism that introduces scarcity, however this mechanism does not result in more power to be wasted to increase flow.
Hence, with TF we might eat the cake and have it too. However the S2F model also shows we need not to be afraid for more scarcity due to burning or a reduced maximum token amount.
If we create a well established market (marketing / listing on exchanges / easy access to tokens etc. / focus on utilisation factor & adding capacity), the added value for both the planet (the new / better Cloud) and the Investor (higher value of the token) will unfold by itself.
Just some Monday morning thoughts. I basically wanted to draw the attention of this community to the S2F article.
