Artificial scarcity is definitely nothing new. Look at the diamond industry, for example. Diamonds are common as hell, but they regulate the supply so severely in order to sell these cheap chunks of carbon for thousands of dollars.
If there’s no competition in a market willing to race others to the bottom in terms of price, there’s no incentive to actually produce a reasonable amount of something people want. You can just withold supply and charge way more.
Artificial scarcity is definitely nothing new. Look at the diamond industry, for example. Diamonds are common as hell, but they regulate the supply so severely in order to sell these cheap chunks of carbon for thousands of dollars.
If there’s no competition in a market willing to race others to the bottom in terms of price, there’s no incentive to actually produce a reasonable amount of something people want. You can just withold supply and charge way more.