Replying to Avatar Muslim Bitcoiner

Here’s our first essay in the Bitcoin Only Series, where we focus on the economic flaws of crypto.

We highlight Bitcoin’s credibly fixed supply and its optimization for money, while altcoins lack credibility due to ever-changing monetary policies. Instead of competing as money, altcoins primarily focus on non-monetary utility, which sacrifice monetary utility by default. We also focus on the circularity of the popular utility of "yield", and explain why it's not actually real and how it's not a substitute for money.

Read the full essay here on Bitcoin Majlis:

https://bitcoinmajlis.org/bitcoin-only-series-1-4-economic-issues-of-crypto/

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Jordan S 11mo ago

What's applicable to crypto, is applicable to Bitcoin too.

One day in the future if too many coins are permanently lost, or network activity drastically slows down the network concensus could fork to increase supply to address liquidity issues.

There's nothing that guarantees that Bitcoin will be 21 Million.

Additionally, a fixed total supply is an over-correction in response to Federal Reserve printing, in practice it would be deflationary which would cause economic stagnation, and as we've already seen, no one would be willing to spend it.

Even gold, which Bitcoin is often compared to has inflation as new veins of gold are discovered every year.

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Satoshis Nephew 11mo ago

So you don’t believe the free market and deflation environment will work?

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Jordan S 11mo ago

I believe free markets work, however, I am not optimistic about a deflationary environment that occurs because of monetary supply decreases.

Deflation can be good if it happens because of productivity efficiency where things become cheaper overtime due to markets able to produce more, however deflation caused by currency is usually unideal.