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Replying to Avatar The Fishcake (nostr.build)

Hypothetically, if let’s say bitcoin had a fixed yearly supply of new coins, instead of the current halving each epoch and so on, would you think it’ll make it more acceptable for circulation? Yes, I know that you all want to keep it as gold and all, but if it were to be used as a regular day to day currency and not just a store of value, the deflation would definitely hurt that. What are your thoughts about that? I once asked similar question almost a year ago, and had a lot of good and not so good replies. Some admitted that in the end early adopters just want to HODL it and keep it out of circulation, further causing deflation and hurting its adoption.

(There, I made a Bitcoin note 😂)

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Zogorich 8mo ago

Well, Bitcoin is the opposite end of what FIAT is. Then, spending less valuable currency, the idea is rooted in the concept of Gresham's Law: "bad money drives out good." If people perceive one currency to be less stable or likely to depreciate compared to another, they will tend to spend the "bad" money and hoard the "good" money. It's a natural inclination to preserve value.

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