If one #sat is split into 100 million .. .on some layer 12 .. .wouldn't that count as inflation ?
Discussion
no
Why ?
Wait till BTC becomes unit of account .. inflation is simply reducing the amount of value per unit of account .. less copper per coin 🪙 ..
You are mistaken brother, you should read more of the books. Start with The Bitcoin Standard by Saifedean Ammous.
The unit (or weight of metal) is irrelevant. What matters for inflation (debasement) is the ***TOTAL SUPPLY***
you can already use mSats which are 1000 per satoshi.
but even if you had a unit of 1 million per satoshi, none of that increases the total amount of bitcoin itself.
You can cut the pizza into a million slices, but cutting a pizza does not make more pizza.
think about it:
If I had to pay you 100 sats, but instead I sent you 100 mSats- would you accept them? No, they would be a different value.
Also- if I have 100 sats what difference does it make to you if I split them up into thousands or millions?
none of that changes the total supply.
Sure , I will read the book .. but most people fail to imagine the unit of account scenario .. because they approach it with arithmetic.. 21 million * 100 million
Let me elaborate ..
Inflation can happen in two ways ..
1. Price of the good increases per unit of account ..
2. Wages reduce or stagnate
When it is easy to spin ever smaller denominations , the wages stagnate but prices don't .. case in point Japanese yen .. a meal is around 8 to 10 USD in Japan but wages are half of US .. why ?
Because wages are always negotiated by unions , but supply is controlled by manufacturers to maximize revenue . .. no one will ever produce more to sell at lower price such that overall revenue reduces .. that would be charity :-)
Add to this highly efficient AI /robotics led manufacturing of future .. there is every reason for human wages to fall ( or literally vanish ) but prices will never .. in fact they will always increase .. hence hyperinflation .. double wammy ..
That is if Bitcoin becomes a unit of account ..if it stayed a store of value then there is no reason for mSats or mmSats .. but the moment it becomes a currency , ever smaller units will be needed .. and since it is lot easier to subdivide Bitcoin ( than gold or copper or even paper money) , it will lead to super hyper inflation ..
Btw ..this is one reason , bitcoiners don't like layer 2 s or 3s .. more layers of onions means more tears in the eye :-)
You are retarded
Just because someone splits their Bitcoin in smaller pieces does not mean I will accept it as payment.
Same thing how I will not accept dogecoin instead of satoshi.
That’s why we run nodes- to verify how many Sats or mSats we are receiving.
Of course you will not .. because you are an early bitcoiner and you are seeing Bitcoin before it became unit of account .. but imagine people in Africa and India who will be born into Bitcoin derieved economy .. For that matter , how many people understand the monetary misgivings of Fed even today .. .00001 %
Yes ok brother but Bitcoin has 0 inflation
There is a fixed supply
About 21million total
That will never change
\\ The Bitcoin Standard by Saifedean Ammous.
Is it available under creative common ?
Saif has made it clear that anyone who cannot afford the book should pirate it.
http://library.lol/main/7D394651158ABC9470CBCCE538FAAA49
His bookstore to support:
Seems to me like a sign of deflation.
If value is split into more coins/ notes that is inflation .. isn't it ?
For example , a nation has some underlying value - gold , land , wmds , army etc .. for the same value if it adds a trillion more notes/ coins ( currency ) .. we call it inflation ..
You can do the same for Bitcoin , when it becomes the unit if account ..
Today .. we presume dollar is inflationary because value in dollar .. when (and if ) BTC becomes unit of account , the count can be easily inflated by those who hold big chunks of BTC .. example microstrategy or ETFs .. or for that matter US gov ..
In other words , you put less copper in the same coin 🪙 :-)
I think of it like when I have 1000$ and the smallest denomination is changed to 0.0001$ (presumably because goods are priced in amounts below 0.01$), I still have 1000$, but over time it buys me more.
With inflation, some other entities in the market get new money, so my 1000$ buy me less. A symptom are discussions about dropping the 0.05$ coins and below, because nothing is priced in it anyways.
How do our perceptions of the situation differ?