Inflation bugs definitely are possible. However, there's a lot of work that goes into making sure that does not occur. And at least as of now, we don't seem to have had one because if we did, we would see much higher Monero inflation because somebody with an inflation rate bug is going to print themselves more Monero. And so far, in the 10 years Monero has existed, we've not seen evidence of such.

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Not if they are smart and cash out slowly. Or just spend the monero on the things, or donate.

But your fighting human nature and human nature is generally going to be as greedy as possible. So donations would be unlikely and cashing out slowly and or buying products slowly enough not to crash the price would also be unlikely.

The fact that it is possible however means capital will never flow into monero in large quantities.

We will just have to agree to disagree on that one.

The future will show who is right. I expect monero to slowly continue to increase in value, but nothing like the appreciation of bitcoin.

But Monero will have more use in day-to-day transactions and therefore will be much more stable than Bitcoin could ever dream of being.