Structural scarcity describes an inherent and unchangeable limitation in the total supply of a digital asset, encoded within its underlying protocol. This property ensures that the asset’s maximum quantity can never be exceeded. It is a fundamental economic characteristic.
Context
This intrinsic property, such as Bitcoin’s fixed supply cap, significantly influences its value proposition by preventing inflation. Structural scarcity fosters a deflationary economic model, often cited as a key driver for long-term asset appreciation. It is a central theme in discussions about the store-of-value characteristics of various cryptocurrencies.
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