> Gold is relatively scarce, with an annual inflation rate of 1.5%. However, the supply is not capped.
> There will never be more than 21,000,000. It is designed to be deflationary, meaning there will be less of it over time. Bitcoin’s annual inflation rate is currently 1.75% and will continue to decrease.
Supply does not need to be capped in order to have a continually decreasing inflation rate [1]. Without any block subsidy halvings, Bitcoin would still have a decreasing inflation rate. It would just decrease much slower.
But it would also be much fairer. Each 20 year generation would be able to mine the same amount of coins, rather than only a small (1/32) fraction of what the previous generation could mine.
And it would not face a potential crisis once the security depends almost entirely on having a constant backlog of high fee paying transactions.
And it would go down in value relative to a similar asset offering ideal scarcity with 0 inflation rate.
All roads lead to bitcoin.
BTW. The price/ buying opportunity is fair. Those who buy earlier risk far more than those who buy later. The Bitcoin standard is becoming more and more inevitable everyday.
There'll be more than enough demand for transactions on the base layer to pay for the security. In fact a bigger concern right now is that there will be too much demand for the base layer.
arcmechanica · 4d ago
It only has value as a currency battery. Extra euros or dollars? bitcoin. look at how it actaully works with monitary policy and you'll see that is how it functions
> Gold is relatively scarce, with an annual inflation rate of 1.5%. However, the supply is not capped.
> There will never be more than 21,000,000. It is designed to be deflationary, meaning there will be less of it over time. Bitcoin’s annual inflation rate is currently 1.75% and will continue to decrease.
Supply does not need to be capped in order to have a continually decreasing inflation rate [1]. Without any block subsidy halvings, Bitcoin would still have a decreasing inflation rate. It would just decrease much slower.
But it would also be much fairer. Each 20 year generation would be able to mine the same amount of coins, rather than only a small (1/32) fraction of what the previous generation could mine.
And it would not face a potential crisis once the security depends almost entirely on having a constant backlog of high fee paying transactions.
[1] https://tromp.github.io/blog/2020/12/20/soft-supply
All roads lead to bitcoin.
BTW. The price/ buying opportunity is fair. Those who buy earlier risk far more than those who buy later. The Bitcoin standard is becoming more and more inevitable everyday.
There'll be more than enough demand for transactions on the base layer to pay for the security. In fact a bigger concern right now is that there will be too much demand for the base layer.