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RE: Bobby Lee Says, "Let's Make Bitcoin Great Again"

in #bitcoin • 6 years ago

Hi @tysler

I dont understand why people keep mentioning limited supply of Bitcoin. Most people trade fiat to BTC to be able to purchase their fav altcoins.

And if you summarize all supply of altcoins, and if you will keep in mind that there are new altcoins every single month - then it's easy to come to conclusion that supply in crypto space has absolutely no limits.

Bitcoin is being mined every day for next .. how many years? Other altcoins as well. Supply is growing every day.

Imagine that USD would be printed non stop for many years ahead. very day. And all other world currencies would be also printed every single day. Plus each month you would have more and more fiat currencies out there (also printed on daily basis). Isn't almost the same?

I really would like to know what's your view. Am I wrong?

Yours
Piotr

6 years ago in #bitcoin by
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     6 years ago 

    Hi @crypto.piotr,

    I am trying to address the issue of inflation here, in monetary terms. The trouble with printing money non stop "depreciates" the actual value of the money. That means fiat currencies lose value over time.

    As for Bitcoin, the protocol has set to mine to a limit of 21 million BTCs. Less and less Bitcoin is mined every time a new BTC block is created on the chain. This is not true for some altcoins, because the supply defined in the protocol is not limited.

    So Bitcoin here is a special case, much more similar to the real gold. Because we know that the total amount of gold in this world is limited, it is valuable and rare. More people want to store their money as Bitcoin as the value of 1 BTC is always from a total of 21M BTCs.

    But fiat which is printed more and more, have to go through a printing and "burning" phase to make sure that the overall supply of the paper money does not increase too quickly. For example, increasing at a rate of 3% (inflation) every year.

    Hope that helps you to understand more about inflation :)

    -tysler

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     6 years ago 

    Thank you for taking an effort to share your knowledge with me @tysler

    I truly appreciate it a lot.

    ps.
    I was lately wondering: what do you think could potentially happend if most altcoins would start shutting down (very likely scenario) and dying? That would cause panic sell of those altcoins which in theory means that investors will have to trade them to BTC. That could possibly increase demand for bitcoin. Do I make any sense? :)

    Cheers
    Piotr

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