Another reason for Bitcoin: China just found huge Gold deposits of a nearly $3T worth, increasing the Gold supply. With BTC such things can not happen.

What are one of the factors that made Bitcoin truly so exceptional? There are many ways to answer this but one of the most obvious and truly the simplest way is the scarcity of Bitcoin. The simplest economical model is the one of Supply and Demand. While Demand in Crypto and other financial sectors is just unpredictable, on the Supply-side Bitcoin has an advantage over everything else.

Bitcoin has a mathematically secures supply, no matter what there may happen in this world, there will only be 21 million BTC (technically even less as we can expect over 1M to be lost forever). That case is different for Bitcoins scarcity “rival“, as many like to call it, Gold:

​

Picture from James V. Straten on Twitter

Just now a gold deposit in the worth of $3T was discovered in China and such discoveries are made very often actually, putting the Gold inflation at about 2%. Bitcoin does also have an inflation as we are yet just at 19M of the supply mined and have a long way left to 21M.

​

Chart from James V.Straten

But that inflation is lower than that one form Gold, at about 1.5% and soon at the 2024 halving it will be under 1%. More than that the total supply of Bitcoin is actually known and everything can be predicted up to there.

Hypothetically speaking, Gold has a WAY LARGER supply as its a mineral that is available over the whole universe. There are astroids with a hundred-fold of the current supply of Gold on earth and mining those asteroids is nothing impossible, though it may not happen in our lifetimes.

Basically: Gold is scarce only on earth and Bitcoin is just as scarce all over the universe.