In economics, scarcity is the result of people having "Unlimited Wants and Needs," or always wanting something new, and having "Limited Resources."
Limited Resources means that there are never enough resources, or materials, to satisfy, or fulfill, the wants and needs that every person has. This is a fundamental component to Bitcoin’s design. There will only ever be 21 million coins mined with the reward for mining Bitcoins being halved roughly every 4 years.
This makes Bitcoin a scarce asset.
This past week there was a post from Francis Poulit stating that 1 Bitcoin is now equivalent to 700 acres of land in scarcity terms.
When we compare these two assets its a fun exercise because viewers begin to think of traditional stores of value in denominations of Bitcoin. Adam Back the well known Bitcoin core developer working with Blockstream chimed in with the statement that 1 BTC for 700 acres was low.
In fact he suggested in terms of Canada’s land prices that 1 Bitcoin equals a whopping 6,000 acres of land.
Needless to say land in certain parts of the world is MUCH more expensive than others making the exercise a bit skewed but fun for sure. A barren field in Canada is not the same in Bitcoin denomination as a square block in the heart of New York City or right off Market street in San Francisco.
This is a fun exercise in measurement which is healthy for a brand new industry. I love seeing people thinking differently and being part of the brainstorm. This is what inspires people to build and create amazing things in any new industry including crypto.