Scarcity Fallacy

Bitcoin is not valuable because it is scarce, it becomes more scarce the more highly it is valued.

As an absolute concept, economic scarcity of a resource implies only that it is not available in limitless supply. Nevertheless, if no person demands it, the resource has no value. A scarce resource under demand becomes property.

Scarcity may also refer to the relative availabity of some property. For a given supply, greater demand implies greater availability. However, increasing demand tends to increase supply, and thereby availability. Similarly, for a given demand, increasing supply tends to decrease demand, and thereby availability. These negative feedbacks stabalize availability and correspondingly price.

A single coin has fixed supply. This is often,incorrectly, considered unique in is the realm of property; there is only one Mona Lisa.