First time compiling all of what I’ve learned from various Bitcoin peeps over the years. h/t nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe for the proper view on technology.
Technology increases productivity, which reduces the cost of products and services to their marginal cost of production.
Fiat inflation: increased money supply leads to inflation which leads to increased prices which fucks with citizen's savings and purchasing power.
Technology is deflationary.
Fiat is inflationary
#Bitcoin: Supply cap of 2.1 quadrillion satoshi. And as of April 19, 2024, has a lower inflation rate (supply issuance) than gold - making Bitcoin harder money than gold. (Gold inflation rate ~2% per year; Bitcoin inflation rate ~0.8% for the next 4 years/210,000 blocks).
Bitcoin follows a specific issuance, which decreases ~every 4 years, leading to an eventual supply issuance of zero. Leading to a 100% deflationary asset.
Government fiat does NOT follow a specific issuance, suffers from deficit spending and bank loans, leading to ever-increasing inflation.
Putting it all together:
Technology increases productivity, which lowers cost of goods to their marginal cost of production.
Fiat economies suffer from inflation, that fucks over citizen's savings and purchasing power.
Bitcoin is deflationary, protecting citizen's savings and purchasing power.