Crossroad of flood and drought | So if I understand right the reason bitcoin is going up is because they believe it’s worth something because there is a set amount of it available so it’s “limited supply”. Thus low supply and high demand.
But it’s for an invisible non tangible item. It’s basically an idea. Thin air idea.
However here’s the question. There are other cryptos out there right? And someone could create more and more cryptos right? Hell I could invent a currency made of my finger print. It’s unique to me and me only and there are only 10 total. One for each finger. Very limited supply.
So how does crypto hold onto their “limited” status and elevated price when new cryptos are made. Over time wouldn’t it slowly dilute “the idea” and just become moeny flow from one to another based on your preference. And would slowly become worthless?
Why is bitcoin better than other cryptos? Why wouldn’t you sell bitcoin at the top and buy the next one at the bottom. Ride it up and rinse repeat. All the while converting it to dollars to do this.
What am I missing here.
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Crypto question
