Why is the supply curve of Bitcoin upward sloping?

1 answers

• malankie gondweApr 22, 2022 · 3 years ago
  The supply curve of Bitcoin is upward sloping because of the unique properties of the cryptocurrency. Unlike traditional fiat currencies, Bitcoin has a finite supply cap, which means there will only ever be a limited number of Bitcoins in existence. This scarcity creates a sense of value and drives up the price. Additionally, the mining process of Bitcoin becomes more challenging over time, requiring more computational power and energy. This increasing difficulty in mining new coins contributes to the upward sloping supply curve. Furthermore, the halving events, which reduce the block reward for miners, create a supply shock and further drive up the price. In summary, the limited supply, increasing mining difficulty, and halving events all contribute to the upward sloping supply curve of Bitcoin.
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