Scarcity Fallacy

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. There is a theory that the fixed supply of Bitcoin is the source of its value.

There is only one Mona Lisa. The theory implies that this is the source of demand for the famed work of art. However there are countless unique works of art with no demand, and therefore no value. A resource with fixed supply with no demand is valueless and therefore the theory is invalid.

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