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Honest question. I have been thinking about how wealth is usually measured in the amount of currency value. For most currency, wealth value far exceeds the actual currency in circulation. For example: I purchase a home for $100k, after 5 years, that house is reassessed to be worth $130k. My wealth has increased by 30%, despite the fact that an additional $30000 has not actually been created in relation the property value.
Now for Bitcoin, with a B21 million cap on circulation, say the house is originally purchased for B10. After 5 years, it is reassessed as having a value of B13, or a 30% increase. Where does the additional coin come into circulation?
If commodities rise in value, do other things automatically decrease in value?
Do we see wealth exceeding the limits of Bitcoin? Or do we see Bitcoin dividing infinitely until the entirety of the world’s wealth can be described to be B21 million?