The fact that new coins are produced means the money supply increases by a planned amount, but this does not necessarily result in inflation. If the supply of money increases at the same rate that the number of people using it increases, prices remain stable. If it does not increase as fast as demand, there will be deflation and early holders of money will see its value increase. Coins have to get initially distributed somehow, and a constant rate seems like the best formula.
Discussion
"If the supply of money increases at the same rate that the number of people using it increases, prices remain stable."
Is this the reason for the push for dollar-denominated stablecoins, so that they can keep printing?
Fun fact
The only rationale for a hard cap is that early adopters want increased purchasing power without proof of work.
if the supply of money increases in pace with increased demand for money, it isn't "inflation"
#bitcoin
#tail-emission
