a. Most currencies, such as fiat currencies (e.g. the U.S. Dollar), have a theoretically unlimited supply, while Bitcoin has a maximum fixed supply of only 18.7 million Bitcoin in total. Given the limited supply of bitcoin, does the law of supply (when price increases (decreases), quantity supplied increases (decreases), other factors constant) does not apply to bitcoin? Explain.

b. The article notes that bitcoin is effectively useless, but that this doesn't suggest it has no value. Are you a believer in the long-term value of bitcoin? What about of crypto currencies in general? Explain.

c. Think of something you own (or would own) that is functionally useless, but still has a market value. Why does it have value if it's functionally useless?

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a The law of supply which states that when the price of a good or service increases decreases the qu... View the full answer