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Title: How is infinite divisibility different from infiniate printablitiy? Post by: Bitcoin Swami on June 06, 2011, 09:39:31 PM I know that bitcoins are divisible by 8 decimal places or so, but I've also heard that they can be expanded if need be.
How is this different than inflating a currency. I'm just can't seem to wrap my mind around this. Sorry I'm kinda new, and am 100% behind the idea of this, just trying to understand a bit better. Title: Re: How is infinite divisibility different from infiniate printablitiy? Post by: Freakin on June 06, 2011, 09:41:45 PM I know that bitcoins are divisible by 8 decimal places or so, but I've also heard that they can be expanded if need be. How is this different than inflating a currency. I'm just can't seem to wrap my mind around this. Sorry I'm kinda new, and am 100% behind the idea of this, just trying to understand a bit better. if you take a single bitcoin and split it into 100 billion pieces, the sum of all those pieces still equals a single bitcoin. There are max 21 million bitcoins ever allowed. Splitting a single bitcoin does not make whole bitcoins, it makes smaller units of trade. Title: Re: How is infinite divisibility different from infiniate printablitiy? Post by: Quantumplation on June 06, 2011, 09:42:31 PM I know that bitcoins are divisible by 8 decimal places or so, but I've also heard that they can be expanded if need be. How is this different than inflating a currency. I'm just can't seem to wrap my mind around this. Sorry I'm kinda new, and am 100% behind the idea of this, just trying to understand a bit better. Dividing a bitcoin does not inflate it's value artificially. If the value of .5 btc goes up to what 1btc used to be, then it's because of natural market forces. Exchanging a dollar for 4 quarters doesn't inflate the money supply, but arbitrarily minting new dollar bills does. Title: Re: How is infinite divisibility differnt from infiniate printablitiy? Post by: rezin777 on June 06, 2011, 09:43:49 PM You aren't increasing the total amount, just dividing it.
Imagine you have one pie. You can cut it in half, and you have 2 pieces, but you still have the same amount of pie. You can cut it in half again, and now you have 4 pieces, but you still have the same amount of pie. The whole pie will always be worth 5 bucks. The pieces will be worth less, depending on how small you cut them. Title: Re: How is infinite divisibility different from infiniate printablitiy? Post by: FreeMoney on June 06, 2011, 09:49:41 PM If you have some money and 10x more is printed you lose 90% of your purchasing power. If people start using smaller fractions you lose nothing. Big difference.
Title: Re: How is infinite divisibility different from infiniate printablitiy? Post by: Bitcoin Swami on June 06, 2011, 09:53:48 PM Ok guys simple enough, makes sense to me now. thank you.
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