If inflation is always bad and makes you poorer then bitcoin should have started with 21,000,000 coins as to not make you poorer?
Discussion
You could make the argument that all the bitcoins already exist just not released in this point in time. So all the economic calculations are based on the 21 million. The unreleased bitcoin don't make your current amount a smaller ratio of the known total.
Whereas all other systems without a finite supply means your total ratio falls over time.
except that unmined, unreleased Bitcoin doesn't "already exist" in any meaningful way.
you could say it's priced in, sure. but how would that not also apply to Monero's tail emission?
Because the terminal supply of monero is infinity. So the value would be 0
"terminal supply" is a mathematical abstraction which doesn't have any bearing on the real world.
The supply of Monero is never infinite. at any point in time it is algorithmically determined.
It absolutely has bearing in the real world. Its how you make economic decisions on your sov.
The expected loss of purchasing power from increasing supply is a major component of it
lol no, sorry but that's not really credible.
I'm not saying that it plays zero role in economic calculation, but in our discussion its a blip.
today Monero is inflating slower than Bitcoin is. and it will continue that way until the next having. nobody is looking at that and making their primary economic calculation about that.
an algorithmically determined inflation rate of 0.6% and decreasing every block is a blip.
The only people who are fretting about it are Bitcoin maxis who want to use "21 million only" as a purity test and fail to realize it's bad monetary policy.
In about 17 years it will be on 21coins. Inflation yes, but not really a concern I would say, in a practical way.
Just remeber how compounding works. 2% means you double the supply every 36 years (technically cloaset to 35)
All else being equal you've essentially lost 50% of your purchasing power in your working lifetime
I understand why inflation is bad and how it affects purchasing power. What I am saying is all inflation is not equal. The Fed printing money to devalue your savings is not the same as a protocol that allows a small amount of inflation to pay miners to secure the network which benefits the entire network. Amount of inflation and what that inflation pays for matters. And if that inflation is agreed on and known it is not the same as unknown amounts and unknown periods with no benefit to the network overall (ppl using USD). So my point is it’s not all the same thing. Like a sip of wine is not the same as drinking a barrel of wine.
Sure if your whole argument is its better than fiat. Yes
My argument is more why would people choose it when it makes them poorer than the alternative.
Because supply is only have the equation of value the other half is demand. If bitcoin demand goes to zero so does value doesn’t matter if terminal supply is fixed.
That's the same for all goods and services.
The point is given a demand for money and the choices available. Even if you had a random distribution. You would end up with all the value in bitcoin as the value of monero gets inflated away
The demand for both is not equal hence bitcoin is currently doing down in value (even with fixed supply) and Monero is going up in value (with tail emissions). And gold value is going up with inflation from mining. These things are not static. The market determines the value.
Are you looking at like the last 5 min?
There's a clear trend in the prices over the last 10 or so years and its not in moneros favor.
I'm talking about the large arc of time type of movement where the noise smooths out.
Bitcoin has a 7% gain on Monero over 5 years. Not that impressive.
See for yourself
Over 10?
Point is returns are diminishing if you expect Bitcoin to perform over the next 10 years as it did in its first 10 years you’re gonna have a bad time.
Don’t get me wrong I love Bitcoin I’m just not blind to its flaws
Fiat returns?
What other returns are there? What do you pay your bills with?
When bitcoin goes up in fiat
PURCHASING POWER!!! YEY!!
when anything else goes up
FIAT RETURNS!!! BAD!!
😂
Then I disagree I expect the fiat returns of the next 20 years to be much higher than the first 20
Take me to your hopium dealer 😮💨💨
That would be great if true but I wouldn’t bank on it.
You expect fiscal conservatism from world governments? With the us at over 100% debt to GDP? Japan over 250?
And with multipolarity and at least continued economic warfare?
I don't see how you can believe Fiat printing won't be exponential
No I just don’t expect bitcoin to go up 129,000,000% in the next 20 years 😂 or Bitcoin to be the sole beneficiary of said printing.
hopium quit smoking it
It won't be the sole beneficiary just the largest.
Let me weaken the argument a bit. I believe the diminishing Fiat returns will be false. There will be too much printing for that to be the case.
Though I do have a greater than 30% or odds that the dollar as it is dies in the next 20 years so 129m% returns may be tame
I see your 129m% and raise you 100 gazillion %
gotta run, good chat ❤