Now it gets interesting: Sepp picks up on Bitcoin’s fixed supply and the resulting elasticity problem.
Discussion
Satoshi acknowledges the need for an elastic currency supply, depending on population (user) numbers. (There are other reasons, like the demand of trade, but Satoshi’s answer proves he is aware.)
Sepp elaborates on the elasticity requirement for a stable value of money. As a method, he suggests a relation to number of nodes. (Not adopted, it would have been imperfect at best.
Russ Nelson adds minor detail on the technical matter of currency in circulation.
Here – for thread completeness only – an irrelevant advertising post of Rheingold project already a year later. (Read on though.)
I conclude my persisting of Satoshi’s announcement thread with a Robert Searle’s reference to LETS, a defective approach at credit money as Russ points out immediately.
This is highly relevant, as credit money is now (March 2025) a key topic if we want to get to a self-stabilising exchange value of bitcoin.
PS: That’s where Bitcredit Protocol comes in.
If you understand all this, please be invited to trial the alpha version of Bitcredit Core v0.2.
