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The Two Types of Scarcity

If you are a collector, artist or creator, you probably hear the word 'scarcity' all the time... 

Scarcity is more complex than it sounds, and it also lies at the root of the most basic economic principles guiding collectible market values.

Here are the 2 types of scarcity:

1. Natural Scarcity: Organic circumstances create a supply deficit relative to the demand.

Examples: Items get lost, forgotten, or stuck (e.g., the owner passes away).

2. Artificial Scarcity: The creator intentionally designs it.

Examples: Slow cadence of generation over time, supply caps, or burning mechanisms.

For creators and collectors looking to increase and maintain the value of their assets, it is key to understand, design, and create sound scarcity models.

As a creator or collector, how does scarcity influence your actions?

I’ll share a deep dive on scarcity in the collectibles space and how that affects NFTs in the long term 

Tomorrow… 👇

Kaloh.xyz

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