If the Number of BTC is Limited, How do You Take Account for Economic Growth?

[isabella01]

Explain that theory...

[BitcoinUKmedia]

Explain that theory...

There are 8 decimal places to one Bitcoin - so it has the potential to grow. Someone could do the math to work out how long we would need to grow before 1 satoshi would be equal to one cent.

[pinkflower]

Good question. But first you should explain your premise on why you challenged BTC's deflationary model and why that doesnt help expand the BTC economy. I think I have an idea why but I would like to listen to what your thoughts are.

[freedomno1]

Explain that theory...

There are 8 decimal places to one Bitcoin - so it has the potential to grow. Someone could do the math to work out how long we would need to grow before 1 satoshi would be equal to one cent.

Add's in Scalability a fully developed blockchain will be able to have stores of value intrinsic to it through the use of side-chains and contracts.
A working example of a platform is Ethereum.
Demester highlights a few interesting points
https://medium.com/@tuurdemeester/im-not-worried-about-bitcoin-unlimited-but-i-am-losing-sleep-over-ethereum-b5251c54e66d

Regarding economic growth price appreciation leads towards more development in the space this increases the incentive to earn Bitcoin and builds economic growth, sidechains act as an outflow and alt-coins where the Gold Standard of currency is applied to Bitcoin.
A lot of models work well with a shrinking supply but an expanded supply available elsewhere if a market is difficult to enter into.

[franky1]

tl:dr first:
imagine if bitcoin was: 1bit(100sat)=$1
bitcoin could hold value to $21trillion

which is enough for 4%-8% of the world population

now the waffle to explainthough i dont like to talk about utopian future and dont think bitcoin will become the single "one world currency" everyone uses(because one choice of currency is no choice... and becomes worse than fiat)

there are
2.1 quadrillion units of measure(sats)

as you can see
2,100,000,000,000,000    as sats
21,000,000,000,000.00    as bits
21,000,000.00000000      as bitcoin

so again, having 2 decimals for cents, to have $1 as 100 sats(known as a bit), as i said =$21trillion.

knowing the average savings is $25k. or the amount of combined asset value a person has is $45k average (those people with average value in banks AND assets)
means that if a certain amount of people around the world put everything they have into bitcoin
bitcoin is ok with and would allow for
466,666,666 people assets

or just their savings
840,000,000 people savings

so imagining this growth occurred in a future where the population was ~10bill
bitcoin would be a world currency for 4.6-8.4% of the world population

which is a healthy place to be.
again bitcoin should not become a single "oneworld currency", because that then becomes worse than fiat for many economic reasons. but 4-8% utility is a good healthy amount of population

now with all that said.
i am not saying it will happen over night nor over months/years.. im talking about decades to century.. so dont turn this into a "gigabytes by midnight" FUD debate.
because whats impossible now can b possible in a could decades with natural growth.
just like call of duty HD online gaming was impossible a couple decades ago.. but today is the norm
just like youtube, skype twitch was impossible a couple decades ago.. but today is the norm

[BillyBobZorton]

Bitcoin will keep growing as long as people can full nodes, otherwise it's time to dump because calling it a decentralized store of value is useless.

Having said that, the deflationary spiral thing is a myth. There will always be people spending BTC even if hoarding it is an incentive. Just like gold, gold kept getting sold all the time even tho its a store of value.

[pinkflower]

Bitcoin will keep growing as long as people can full nodes, otherwise it's time to dump because calling it a decentralized store of value is useless.

Having said that, the deflationary spiral thing is a myth. There will always be people spending BTC even if hoarding it is an incentive. Just like gold, gold kept getting sold all the time even tho its a store of value.

The speculators dont care if BTC is still decentralized or not. They will invest in tulips if the think its profitable. Or did they?

[Yuhee]

Bitcoin will keep growing as long as people can full nodes, otherwise it's time to dump because calling it a decentralized store of value is useless.

Having said that, the deflationary spiral thing is a myth. There will always be people spending BTC even if hoarding it is an incentive. Just like gold, gold kept getting sold all the time even tho its a store of value.

The speculators dont care if BTC is still decentralized or not. They will invest in tulips if the think its profitable. Or did they?

Well yeah because just like gold even in the next future it will no vanish and something the same will just come up with higher prices. Btc will never run out as long there is the world wide web. And if we noticed more and more countries are building machines just mining so it just proof that a lot of millions are invested in btc therefor it will not run out of supply. The growth is also seen in the coin that was released in some coin market sites.

[darthmaul]

tl:dr first:
imagine if bitcoin was: 1bit(100sat)=$1
bitcoin could hold value to $21trillion

which is enough for 4%-8% of the world population

now the waffle to explainthough i dont like to talk about utopian future and dont think bitcoin will become the single "one world currency" everyone uses(because one choice of currency is no choice... and becomes worse than fiat)

there are
2.1 quadrillion units of measure(sats)

as you can see
2,100,000,000,000,000    as sats
21,000,000,000,000.00    as bits
21,000,000.00000000      as bitcoin

so again, having 2 decimals for cents, to have $1 as 100 sats(known as a bit), as i said =$21trillion.

knowing the average savings is $25k. or the amount of combined asset value a person has is $45k average (those people with average value in banks AND assets)
means that if a certain amount of people around the world put everything they have into bitcoin
bitcoin is ok with and would allow for
466,666,666 people assets

or just their savings
840,000,000 people savings

so imagining this growth occurred in a future where the population was ~10bill
bitcoin would be a world currency for 4.6-8.4% of the world population

which is a healthy place to be.
again bitcoin should not become a single "oneworld currency", because that then becomes worse than fiat for many economic reasons. but 4-8% utility is a good healthy amount of population

now with all that said.
i am not saying it will happen over night nor over months/years.. im talking about decades to century.. so dont turn this into a "gigabytes by midnight" FUD debate.
because whats impossible now can b possible in a could decades with natural growth.
just like call of duty HD online gaming was impossible a couple decades ago.. but today is the norm
just like youtube, skype twitch was impossible a couple decades ago.. but today is the norm

So according to your calculation it will be available for 4-8% of population only but the rest of the world is still in the dark side of moon! There should be something different story if we really want bitcoin to be used by each and every person on the earth. May be a government tie up of all the countries (at least those which are friendly nations) this can lead to major change. Just imagine China, India, USA and Europe atlas they have economical relations and they bring this change.

For doing so the limit of bitcoin may be raised to unlimited and the problem of your question (4-8%) may get resolved in no time. The after math would be interesting and worthy I guess.

[pinkflower]

Bitcoin will keep growing as long as people can full nodes, otherwise it's time to dump because calling it a decentralized store of value is useless.

Having said that, the deflationary spiral thing is a myth. There will always be people spending BTC even if hoarding it is an incentive. Just like gold, gold kept getting sold all the time even tho its a store of value.

The speculators dont care if BTC is still decentralized or not. They will invest in tulips if the think its profitable. Or did they?

Well yeah because just like gold even in the next future it will no vanish and something the same will just come up with higher prices. Btc will never run out as long there is the world wide web. And if we noticed more and more countries are building machines just mining so it just proof that a lot of millions are invested in btc therefor it will not run out of supply. The growth is also seen in the coin that was released in some coin market sites.

What do you mean by BTC will not run out as long as there is the internet?  Bitcoin is capped to 21 million coins. It will run out, the supply is limited.

[7788bitcoin]

In addition to the possible divisibility of the units down from BTC, mBTC, bits, Satoshi etc., I am sure the creator of bitcoin has predicted the creation of other alt-coins based on the blockchain technology.

Therefore, the alt-coins will also play a role in supporting the ever growing demand due to economic growth. I think this is happening at the moment as we see a increase in BTC price but also a drop in dominance of bitcoin in the cryptocurrency market.

[Xester]

Explain that theory...

In the forex exchange the more a country has a US dollar coming in the more the value of their fiat currency becomes. So think this way, if you buy more bitcoins today using few of your dollars and if you store your bitcoins for five years. After five years the price of bitcoin is already at 1 million dollars each. The difference of the dollars you spent and the dollars that you will earn when you sell your bitcoins is very high. Thus if you sell your bitcoins there will be more dollars coming in the country and that will make your local fiat currency to increase in value.