You touched on a potential problem that may occur in the future. Many BTC holders never sell the coin. This will create scarcity of the coin and inflation in the value. At the same time, you can borrow money against the coins so you never have to sell the coin. As long as it keeps going up in value over time - or at least as long as you can make the interest payments on the loan - you never have to liquidate them.
This is one of the reasons there are people out there who really believe the BTC value will reach $200,000 and even $2 million. Once there are no coins left and nobody really willing to sell them - well it could go either way. At some point there won’t likely be much demand or many people in the market for them so the price will either stay very high with no ability to sell them; or it will crash dramatically because nobody left who wants to buy them.
I had never heard it put that way, I agree.
There are a bunch of lost coins out there
I know I have some from when bitcoin was first announced and they were giving them away for free.
“At the same time, you can borrow money against the coins”
wait ... you’re talking about borrowing REAL money, right?
“or it will crash dramatically because nobody left who wants to buy them.”
the classic “greater fool” theory in which eventually you run out of greater fools ...