I gotta be honest, I only thought in terms that the price was set on that 7-12%. Didn’t think about how that’s all they get to play with to rehypothecate. Thank you.
Discussion
Ok thought about it. Forgive me if I’m skeptical the sec/fed will not allow extreme exploitation of true absolute scarcity.
Those ass holes do not care about protecting the public, full stop.
If “Bitcoin” ever had more than 21M in supply it’s not Bitcoin. 21M BTC is written in the code (specifically in total sat units possible). The worst they could do is double spend a transaction if they own 51% of hash power and if they do that we could fork and completely ignore that hash
The price is set at the margin and is a result of demand more than supply. Total Supply is known, demand is the unknown. Price goes up from more buyers then sellers not as a result of btc issuance. Although the halving does have a price shock effect due to half as much supply being sold at the margin by the miners each block. Miners are typically the largest sellers so them getting half as much BTC ever 10 min results in less selling pressure.