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however because the supply is dwindling it must eventually STOP when it reaches zero those who are now holding the bag now HAVE to sell (because holding doesn't create the market action that generates price information)

it's like if everyone jumping on the plane suddenly realizes the plane is just a rolling model plan and is never going to actually take off. suddenly those who were DEMANDING now become SUPPLIERS

this FLOODS the market b/c now there is no one demanding because they all became suppliers. this creates the exact opposite of the previous demand chasing supply scenario as supply is not desperate for any demand. hence a falling knife.

in practice bubble persist for longer than this simplified scenario because the rising price action gets the attention of people who have holding as the market gets hotter, these assets mobilize and flow into the market creating multiple waves of the above dynamic

the supply is "dwindling" yet also never ending. kinda like a carrot on a stick. it's always JUST ahead but it never reaches, causing the price to go higher and higher feels like a scam right?

in theory, because all the suppliers are individual actors, there's no way to draw out the illusion of dwindling supply. everyone is tempted to just sell at the high price instead of maximizing total wealth for everyone (like debeers does)

just like a sun, the hotter it burns the shorter its lifespan. debeers wants a nice long burning good intensity burn. it does NOT want a super hot sun that explodes leaving the company bankrupt longterm while the execs runaway with cashed out stock

the "friction" in the system is how rapidly the money moves as the price gets higher. as the price increases the "volume" of money also grows. it can't grow infinitely so it must eventually stop just like when the body burns out its fat reserves