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To: politicket

Your assumptions are mostly wrong. How can a limited supply be inflationary?

Adding a transaction fee is something that’s been going on since the first interbank transaction was done.

If you’ve ever sent a wire to a foreign country, you know that Bitcoin is faster and cheaper than any alternative.

I am ok with people not “liking” cryptos…but come on…your statement is almost entirely false.


11 posted on 12/21/2021 8:44:44 AM PST by Vermont Lt
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To: Vermont Lt
How can a limited supply be inflationary?

Easily. If you understand Bitcoin.

Inflation happens when a "monetary" source is devalued.

Bitcoin only adds to its "money supply" via the reward that a miner gets when a block is successfully mine. That labor is called a "Proof of work".

Every so often, the reward gets halved (which is how there will be an eventual cap on the "money supply".

When the reward gets halved then it takes twice as much labor (mining of a block) to achieve the same unit of return.

That's called devaluation - and it is inflationary.

13 posted on 12/21/2021 8:58:37 AM PST by politicket
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