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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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Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Earle Loxton, CEO of DCX Capital (Pty) Ltd as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.