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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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To: politicket

Actually, there is a 21 million unit limit. You would know this if you understood Bitcoin. 90% of that has been mined. Every couple years the “reward” for mining is halved. When the last mined Bitcoin is done, the miners will be paid through transaction fees.

So…not sure where you are getting your information…but you are skewing the crap out of it to make your point.


14 posted on 12/21/2021 9:24:15 AM PST by Vermont Lt
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To: politicket

The value of it to dollars inflates…if that is what you are talking about? But dollars are unlimited and backed by no fiscal policy and an ever weakened tax base.

So, if that’s what you meant…you are right.


15 posted on 12/21/2021 9:26:19 AM PST by Vermont Lt
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To: politicket
Proof of work will be replaced by proof of stake once everything moves to the Lightning network.

Halving only applies to miners, and most Bitcoin holders don’t mine, so Bitcoin is in no way inflationary as a medium of exchange or store of value.

46 posted on 12/26/2021 10:49:09 AM PST by GunRunner
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