IOW, it’s not just that BTC dilutes you less as supply expansion is controlled and slow, but that even that small dilution serves the network itself, rather than being siphoned off. Because even a slow bleed like gold (the supply of which increases 1-2%/year) is catastrophic over the long haul if it’s not recycled.
The miners aren’t cantillionaires, but service providers to the network, so the reward doesn’t on net impoverish the ecosystem. It’s almost a perpetual motion machine, except that it requires real-world physical energy from outside itself to work. But even then it incentivizes discovery of new energy and efficiency of energy use, so again, it’s probably net positive on that front.
The other reason it’s not a PPM is that it needs some energy from somewhere, but essentially it’s a super intelligent AI scouring the universe for that.
Half of this misses me, but what about the inevitable bleed of Bitcoin due to lost keys? Seems inevitable to me that as more people use it loss rate will increase.
Is this article saying 10-25% lost already something you give credence to? https://www.cryptovantage.com/news/ask-cryptovantage-how-much-bitcoin-has-been-lost-forever/
I think a good chunk has definitely been lost, but that cuts the other way — that increases the value of the existing coins. The entropy isn’t number of coins, it’s in value. The fiat system is bleeding value via inflation. But while bitcoin has tightly scheduled (very slow) inflation until 2140, (a) inflation provides a service (securing the network); and (b) lost coins are deflationary, making the existing holdings even more valuable.
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