 |
May 12, 2015, 12:48:33 AM |
|
As long as new coin has a production cost due to healthy competition, the coin generation scheme can even increase at a small and constant percentage each year, like Milton Friedman described
Although the speed of money supply increase might looks the same, it is very different than the way that fiat money supply grows today, since the growth of later is based on debt, and the growth of bitcoin is based on work already done
And later when economy is running out of steam (nothing grows forever), the bitcoin's value will not be impacted by a total debt meltdown like fiat money (this has not happened yet, but is developing quickly)
Currently everyone thinks that total coin supply should be capped, but maybe one day if bitcoin gained mass adoption, people will start to realize that capped total supply will make the value of bitcoin unstable forever, one bubble every 4 years, makes it a speculation heaven, not suitable as a currency. In fact even today, majority of the people treat bitcoin as a long term speculation instrument
|
