BITCOIN limited supply a severe limitation
I have noticed in the last month some analysis (claims) starting to evolve that BTC cannot function as money because of the capped supply. Jim Rickards (sorry I am not finding the proper link to show) has claimed that there can be no bond market with a fixed supply. Alsdair Macleod recently published an article: https://www.goldmoney.com/research/goldmoney-insights/don-t-dismiss-gold-and-silver that makes this claim…..
“If an inflexible, limited-issue cryptocurrency like bitcoin became the circulation medium to replace fiat, no investment for a multi-year project could possibly be contemplated because of the effect on future prices. Measured in scarce bitcoin and with a firm cap on its total issue, prices for finished products at the end of the investment would end up being significantly lower than their production costs, thereby ruling out the project itself.
That won’t stop cryptocurrencies like bitcoin continuing to soar while increasing numbers of the investing public see them as must-have wealth protection at a time of rapidly increasing fiat debasement. But that is a different function from operating as a practical means of exchange.“
My initial reaction is that this is traditional hard money proponents struggling with the fact something could compete with gold for soundness as money. I think the market will sort all this out in it’s own time and I am not engaging in the bitcoin vs gold food fight here but rather I am trying to understand if there is any substance to these claims.
Saifedean speaks to this topic in chapter four.
I would like to hear others thoughts on these claims. And is anyone else noticing this argument being presented.
Thank you for your attention.