Scarcity Creates Value: Why Are We Drawn to Rare Cryptocurrencies?
Have you ever asked yourself why limited supply cryptocurrencies like Bitcoin attract us?
The reason is not only technical... it's psychological as well.
The human mind is programmed to appreciate scarce things. In psychology, this is known as the 'Scarcity Effect' – the less there is of something, the more we value it, even if it doesn't actually change.
• Bitcoin, for example, has a maximum of only 21 million coins. This scarcity gives it an aura of 'digital gold' and fuels the desire to own it.
• Coins that burn a portion of their supply (like BNB) exploit the same principle: reducing supply to increase appeal and value.
What's important here?
Many crypto projects build their marketing around 'scarcity,' but the smart move is to distinguish between true scarcity and false marketing.
Don't be drawn to a coin just because it's scarce; understand why it is scarce and how that actually affects its value
