But the market places a higher value on a single btc once they are "out of circulation" because money is scarcer, right? So the only person losing money is you.
Yup. That's a feature of currency systems that are pegged to a commodity. The difference is that instead of coconuts or gold, the scarce commodity is a bunch of random numbers.
The are many problems with such systems, which is why the entire planet moved away from them starting about 100 years ago. Just like the initial users of BitCoin who are sitting on millions of the things are limiting the bitcoin supply in order to slowly sell them for real coin.
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But the market places a higher value on a single btc once they are "out of circulation" because money is scarcer, right? So the only person losing money is you.
Yup. That's a feature of currency systems that are pegged to a commodity. The difference is that instead of coconuts or gold, the scarce commodity is a bunch of random numbers.
The are many problems with such systems, which is why the entire planet moved away from them starting about 100 years ago. Just like the initial users of BitCoin who are sitting on millions of the things are limiting the bitcoin supply in order to slowly sell them for real coin.
How can the market adjust in a vacuum of information?
Information is contained in transactions. That's how supply and demand determine prices in the real world.