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2024-12-06 15:34:39

maiakee on Nostr: A limited money supply, like gold or Bitcoin, can be used globally due to its ...



A limited money supply, like gold or Bitcoin, can be used globally due to its divisibility, deflationary nature, and universal trust in scarcity. Limited money can be divided into smaller units (e.g., Bitcoin’s 100 million Satoshis per coin), allowing it to facilitate transactions of any size.

As global demand grows, the value of each unit increases, enabling the same supply to support more economic activity. Digital systems enhance this process, making transactions efficient and scalable. Historically, gold served as a global currency despite its limited supply by being trusted and divisible, with paper money backed by gold reserves.

Challenges like hoarding and liquidity needs are addressed through lending systems, fractional ownership, and local credit or currencies for short-term use, while the limited supply remains the stable base for global trade. Ultimately, the key is trust in scarcity, divisibility, and technological efficiency to manage transactions globally.

#siamstr #btc #bitcoin #nostr
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