Replying to Avatar Weird Mike Jerkovic

Saying that inflation is bad is not quite right.

In the fiat system the inflation just gives an advantage to the wrong players.

The build in inflation in #Bitcoin rewards the working class (the miners).

True or false?
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Pablo Xannybar 2y ago

I get where you're coming from but mining rewards aren't inflation. As you know, Bitcoin has a fixed supply of 21 million. This factor is already priced into the value of BTC. It is a fixed supply asset, and if the supply can never increase beyond 21 million, it can never inflate.

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Weird Mike Jerkovic 2y ago

that's the build in inflation, it gets less every 4 years. after the last Bitcoin has been mined the inflation stops.

How would you call it if not inflation?

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Pablo Xannybar 2y ago

Inflation means a decrease in spending power. This doesn't happen as a result of new Bitcoin being mined.

New Bitcoin enters circulation, less and less each halving as you said, but the total amount of 21 million is priced into the value of BTC.

The fixed supply is why it isn't inflationary.

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Weird Mike Jerkovic 2y ago

it is inflationary cause you don't have the 21M yet.

Inflation stops when the last Bitcoin is mined.

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Pablo Xannybar 2y ago

It's still not inflation because the very definition of inflation requires a decrease in spending power, i.e. a devaluation of the currency. This is not the case with Bitcoin.