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Hypothetically, if let’s say bitcoin had a fixed yearly supply of new coins, instead of the current halving each epoch and so on, would you think it’ll make it more acceptable for circulation? Yes, I know that you all want to keep it as gold and all, but if it were to be used as a regular day to day currency and not just a store of value, the deflation would definitely hurt that. What are your thoughts about that? I once asked similar question almost a year ago, and had a lot of good and not so good replies. Some admitted that in the end early adopters just want to HODL it and keep it out of circulation, further causing deflation and hurting its adoption.

(There, I made a Bitcoin note 😂)

𝕞𝕪𝕡𝕒𝕥𝕙𝕥𝕠𝕗𝕚𝕣𝕖 8mo ago

Bitcoin being hodled IS CIRCULATION!! People are choosing to use it as money, aka a store of value. When needed, they will spend it also.

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Discussion

M0053 8mo ago

I think your point that holding money is a use case for good money is what you're saying, but other concepts like velocity, for example, are affected by people who do not spend the money they hold.

That is where some of the mystery lies, and I don't think we're going to find out until we find out.

I think Bitcoin's ease of divisibility and other aspects are going to make it work well even though it is a deflationary asset.

𝕞𝕪𝕡𝕒𝕥𝕙𝕥𝕠𝕗𝕚𝕣𝕖 8mo ago

I agree, the divisibility will make it keep working. We just will have smaller numbers like in previous centuries.

Economics is just people and division of labour. As long as this exists, money will keep circulating. If people hold and don't spend, it only increases the spending power and gives people more temption to spend to life upgrade.

The natural order of things is deflation according to Jeff Booth.