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Let's imagine you try to play a game of 100 potatoes, and the rules say you can delay consumption of potatoes, consume them, or let them decay, you cannot plant any new potatoes to grow them.

This is what will happen to Bitcoin's supply unless a supply increase is issued by a fork.

Bitcoin in theory will eventually run out of supply that is available to the general population, even coins like Litecoin with a higher supply of 84 Million will eventually (in theory) run out of coins to circulate.

There needs to be a process in which new currency is minted to replace destroyed, or lost currency.

This is where tail emissions comes in, Monero has a low supply but will ensure that there will be a constant supply of New Monero entering the market to replace Monero that is gone permanently.

Monkey Pox Denier 7mo ago

First: you don't "consume" bitcoin, you spend them. They are not lost, they change hands.

Second: regarding lost bitcoins, you don't need tail emission. You just add more numbers AFTER the decimal point, like milisatoshis do for example.

Problem solved without tail emission.

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Discussion

ChadXMR 7mo ago

The price would need to keep doubling every 4 years with the halving to keep up the security budget. When it doesn't, miners will get into trouble and ASICs would likely become worthless, making 51% attacks more affordable.

I find tail emission a more elegant and worthwhile decision.