Hey Jesscarce Resources

Digital scarcity is something relatively new to most people and a concept that is lost on many getting into the cryptocurrency space. Since we live in a world of nominal figures, it's easy to get numbers confused, and if you don't review the context behind the numbers, you can easily fall into certain traps. In the crypto space, we have a severe information deficit, and it's leaving cracks for plenty to fall into and get burned. 

The way I see it right now is private currencies are skilled by two types of people all with their own biases that need to be analysed before you can accept and process the information they provide. 

## The Tech Spec

The technology person we cannot fault their talent and intelligence, they know code, they know technology, and they know systems, and that's where their sense of authority is built on and leveraged. They will speak in jargon terms and the efficiency of operations and how their tech is better than centralised services or Bitcoin, and that's great, but this is all theory. It's never been stress tested. 

Whenever you add money and users into the mix any theory gets pushed to its limits and the majority of them break, which is what we see happening in altcoins that turned into products, they may work but to a certain extent.

## The Mouth Piece

Also known as the Shiller will praise to the highest any coin that is in their bag or given to them to review. These are not technical experts, these are marketers, and they're the ones I am most critical of as they speak from a position of authority without knowing anything about the underlying product or its economic sense. 

You can see this with crypto YouTubers, dumbing down the content for the masses so that they can benefit from their audience. I wouldn't mind if these creators were open and said I have an interest in crypto but I don't know everything and this is what I don't know or understand and this what I do know. 

No, they speak with the utmost confidence spitting out stats and facts as if they're doing Gods work.

Both have a vested interest in you believing them, so they're going to try and be as convincing of their view as possible. 

![Scarcity is emotionally driven](http://img.picturequotes.com/2/341/340305/in-a-business-society-the-emotional-economy-is-an-economy-of-scarcity-quote-1.jpg)

**Image source:** - [picturequotes.com](http://www.picturequotes.com/scarcity-quotes)

## Economic Sense

So why did I go on such a tangent? Because you needed the context for me to make my point. Both these sources of information have zero understanding of economics. One aspect altcoins always fall back on is scarcity, yes digital scarcity is better than infinite money printing, but scarcity doesn't automatically mean value. 

Most altcoins want instant gratification because they simply don't have the patience to build which is what Bitcoin has been doing and currently is doing, it's carving out a market for itself over time and driving scarcity organically. As coins are created, some are lost, some are purposefully destroyed, and some are removed from circulation once the owner passes on. 

Each time a bitcoin is lost that person gifts the overall community with additional value as the market cap is shared with the community. The Bitcoin gets harder to mine and harder to buy and more distributed and that only comes with time and you cannot buy that or artificially ramp it up.  

So when people often appeal to scarcity as a factor in crypto, I cringe. Oh as coins are burned they become scarce, burning coins provides pressure on scarcity, but it doesn't mean more people are coming in more people want your coin, are emotionally tied to your coin, are willing to put in effort or money to get your coin. 

## A battle of monetary policy 

The way I see the future of cryptocurrency along with central bank digital currency evolving is that on a technical level, it will be almost equal. In an open-source world, it's hard to remain ahead of your competition unless they fundamentally choose to ignore your solutions or want to try something to differentiate themselves and in that pursuit for improvement they diversify in a technological sense. 

The differences will come in monetary policy, how currencies handle distribution, how their stock to flow models work, how their circulation works, what their velocity of trade will be. It won't be about price and market cap but about GDP driven from that currency.

## Have your say

What do you good people of STEEM think? How do you think crypto will be judged in the future?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

## Let's connect

If you liked this post sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler


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