# Cryptocurrency
### A Mistake
Yesterday, I suddenly realized a misconception I had in a dream. I used to thoughtlessly believe that in the case of Bitcoin, the number of users and the price were positively correlated, and both maintained exponential growth.
### Number of Users vs Price
Let's first look at the first half of the sentence, 'the number of users and the price are positively correlated.' This implies several logical simplifications:
1. The number of users ≈ Demand for Bitcoin. This can be considered fundamentally valid.
2. Price is positively correlated with demand. This assumption only holds under the condition of stable supply. The actual supply of Bitcoin is as follows:

It's just a ledger, an honest, limited ledger. Why is it so valuable? Why is gold so valuable? Like gold, Bitcoin is a 'valuable rarity' (and not a currency, at least not currently). The rarity is due to Bitcoin's assurance through mathematics and game theory of its **limited supply** and **absolute honesty** (absolutely true). What else in this world has such a property? There can be many, such as gold, antiques, Van Gogh's paintings... But first, the 'authenticity' of these items requires high costs for verification; antiques and paintings can be faked, and identifying their authenticity requires professionals, training a qualified professional incurs very high costs, and the process is highly uncontrollable. Most critically, professionals can also lie, establishing trust in a particular professional is also costly. The authenticity of gold is relatively easy to verify, but today, for most ordinary people, there is no need to authenticate gold, nor do they even need to bring gold home; they can just hold paper gold, which is all based on trust in today's credit system (ultimately trust in the government). Satoshi Nakamoto clearly does not trust the government and believes that the government's unrestrained credit expansion is dishonest. In this respect, both gold and Bitcoin are inflation-resistant assets.