Disclosure - I made up the dog.
Point being that the scarcity argument of bitcoin is on its own not persuasive.
I used the cheeky example of dog poop because I though it was cute but I guess it was"too cute" and obscured the point.
Almost ironically, having a deflationary system is something one would really like to avoid if you thought about it. It only rewards hoarding. The king, with his hoard of gold, only grow's richer by the year. As long as he is cash flow positive, the supply upon which the peasants rely on to trade shrinks and therefore the value of each grain increases.
I, for one, don't think this system is one we should be rushing to return to.
No physical currency can be divided into 10 million pieces, no one has a crystal ball.
If one year an apple costs 2 gold coins, but next year, that same apple costs only 1 gold coin - this would be deflation. I'm still trading gold coin(s) for an apple (fungible), it's just that the currency itself got stronger against the asset I wanted to purchase.
The currency (or asset) will continue to outperform the dollar or any fiat currency because it is setup that way to scale inversely and inverted-like through the magic of fungibility.
No one no where ever created a means of trade accurate to the ten millionth. Go look it up I’ll wait.
Just because something scales inversely to your currency that doesn’t make it a ponzi, it makes it mathematically and theoretically possible; as the market itself has proven for nearly a decade.
If millennials invest in btc before boomer pensions get in, it’ll be a needed transfer of wealth.
If there’s a deflationary asset wave, each person is incentivized to get in early. Which I think is what is happening.
Although I think one huge hack or whale unloading could drop the trust in Bitcoin for years.
Incidentally, I hear that there are all these forks and clones of BTC, many of which have strictly limited supply. So, they are also valuable long term investments, I assume?