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Title: Inflation by sleight of hand Post by: selavy59 on November 29, 2013, 01:07:31 PM Only a fixed amount of Bitcoins will ever be produced therefore has built in deflation. A Bitcoin can be broken down into 800 million Satohis, it could in theory be broken down further. While this does not increase the amount of Bitcoins it does increase the amount of 'currency units'. So by doing this have we not just increased the money supply? We've just simply moved the decimal point in a different direction.
Title: Re: Inflation by sleight of hand Post by: Gabi on November 29, 2013, 01:11:44 PM It is very simple.
What you have does not change in proportion to the total. If you have 1btc or 1.000 millibtc or 1.000.000ubtc you will ALWAYS have 1 of 21.000.000 of the total. Moving the decimal point is just that, nothing more. It affect everyone equally. Very different is printing more money, if you have 1 dollar and the fed print some trillions of dollars, you still have just 1 dollar, but the total amount of money just increased. This means your dollar is worth much less. Now you have less of the total than before. Another point of view: do 50.000grams weigh more than 50kilos? Or are they the same? Title: Re: Inflation by sleight of hand Post by: MA5H3D on November 29, 2013, 01:12:58 PM If you have one pie and you cut it into four pieces, how many pies do you have?
Title: Re: Inflation by sleight of hand Post by: bitcoinpsftp on November 29, 2013, 01:14:24 PM It is very simple. What you have does not change in proportion to the total. If you have 1btc or 1.000 millibtc or 1.000.000ubtc you will ALWAYS have 1 of 21.000.000 of the total. Moving the decimal point is just that, nothing more. It affect everyone equally. Very different is printing more money, if you have 1 dollar and the fed print some trillions of dollars, you still have just 1 dollar, but the total amount of money just increased. This means your dollar is worth much less. Now you have less of the total than before. Another point of view: do 50.000grams weigh more than 50kilos? Or are they the same? But I'm confused :( 50.000 grams, or 50 kilos :( who in their right mind would say 50.000 doesn't way more than 50... It's a bigger number. Bigger means bigger. I'm bored, ignore this post xD Title: Re: Inflation by sleight of hand Post by: selavy59 on November 29, 2013, 01:16:21 PM Thanks Gabi. ;D
Title: Re: Inflation by sleight of hand Post by: Mjbmonetarymetals on November 29, 2013, 01:16:45 PM I like chocolate cake if I'm hungry I cut it into 4 pieces and eat those, if I'm very hungry I might cut it into 8 pieces and eat those, when I'm absolutely starving I cut it into 16 pieces and munch down the lot .
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