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The block subsidy is inflationary. The important thing is that the inflation schedule:

1) halts, and

2) is set in stone and cannot be changed

This makes it trivial to show that the bitcoin supply is capped. This gives every bitcoiner confidence that the value of their investment will not erode.

Confidence is sexy. It makes bitcoin more popular. Money is a natural monopoly. The more popular a form of money is, the more useful it is and the more popular it becomes.

Monero makes different tradeoffs for a different use case. It can't win by copying bitcoin's playbook. I think the tail emission is a good idea to keep the miners mining.

Saberhagen The Nameless 9mo ago

I'm still not convinced. In any other market situation, I'm sure everyone here would agree that an increase in supply floating around + same demand = tendency for price to fall. It's the law of supply and demand. I think this is just mental gynmnastics to make a special exception for Bitcoin. So either you think Monero AND Bitcoin mining is inflationary for now (until the day block subsidy ends), or neither of them are.

But I like that I have options that make different trade-offs like you said

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Discussion

OceanSlim 9mo ago

But the supply doesn't increase. That's the simple economics of it. If Bitcoin inflated, it's purchasing power would decline, just like you say, just like XMR... But Bitcoin is going up forever. Until you understand that, you'll keep 💩 coining.

Saberhagen The Nameless 9mo ago

But the circulating supply is always increasing. There is more and more to go around which affects the value for everyone that currently holds any. That's inflation.