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The role of Scarcity as a determinant of value

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DCX-scarcity-value

Drawing parallels between a drunk (and his dog) to Bitcoin, Earle Loxton presents a study to highlight that scarcity directly drives value. Continuing on his previous analogy comparing mining Bitcoin to mining gold, Earle underlines the monetary value in Bitcoin through Stock-to-Flow. Catch the presentation and the technical breakdown on this concept hosted via on medium.com below.

I’m Earle Loxton, the co-founder of Digital Currency Index, and this is a story of a drunk and his dog, but more of that a bit later. I’m an entrepreneur with a handful of successful startups under my name, ranging from engineering to health insurance and lately including fintech and investments.

drunk-and-dog-bitcoinYou may know my co-founder a bit better: Michael Jordaan, ex-banker, now investor in start-ups like VALR, Rain Cellular and Bank Zero)

But what does the future hold and could Crypto be the next Asset Class that creates generational wealth?

Since Bitcoin currently represents close to 80% of the DCX10 Index, I will limit my argument around the prospects of Bitcoin as the protagonist.

Cryptocurrencies-dcx

View the presentation on medium.com

Parts of this article was condensed with the permission of the author PlanB — refer to https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25 for the original version.

 

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