A #Bitcoin thought…
Small very local, yet internationally recognised, circular economies such as Bitcoin Beach will increase their Bitcoin holdings as tourists visit bringing in their Bitcoin. Wouldn’t this be the same as money printing and therefore result in inflation?
Bitcoin is going up every 4 years it doesn't matter what ppl do with it. They should be hqppy ppl are willing to spend it there
I think the main reason why not is that these places don’t exist in a vacuum. One dynamic is that they become wealthier as a whole and it results in some local impacts such as house price inflation. But it’s not the same as money printing.
How is the the same as money printing? The total amount of bitcoin doesn't go up. Still capped at 21m
The total amount of Bitcoin in the world is fixed, agreed. But the amount of Bitcoin sloshing around that somewhat closed economy would go up, hence the thought there might be local inflation.
Reductio ad absurdum: what if somebody helicoptered in and gave 0.1 Bitcoin to half the residents; would the price of beer at the local bar still be 50 cents?
