web3/concepts/artificial-scarcity.md

Artificial Scarcity

The abstract notion of creating an asset which has no physicality or underlying and whose demand curve is not generated by use-value or income-cashflows.

Financial instruments like bonds, stocks and derivatives are not artificially scarce because of their underlying cashflows. Commodities are not artificially scarce because of their physicality and intrinsic value.

Products like crypto asset and nft are artificially scarce.