3 ms·
They think about it a great deal, especially ones like Bitcoin with finite money supply that will become less and less accessible over time as people die or los
by SkyMarshal 9y ago
They think about it a great deal, especially ones like Bitcoin with finite money supply that will become less and less accessible over time as people die or lose their keys. Ethereum for example built a money supply algorithm that adds a set amount of currency every year, resulting in an eventual equilibrium where the % of total money supply lost per year = % of total money supply added. This has been on peoples' minds since the early days.
- runeks 9y agoCreating more currency is not necessary, all that’s needed — if a single currency unit becomes too valuable because it becomes too scarce — is to increase divisibility.
- _mhr_ 9y agoWhy is increasing divisibility any better than creating more if the end result is the same?
- runeks 9y agoBecause by increasing divisibility you don’t change the distribution of wealth (how much people own relative to each other) whereas, if you create more currency, the recipient of the new coins is enriched on behalf of everyone else.