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Actually neither gold nor Bitcoin has a fixed supply. The gold supply increases by about 2.5% annually, and Bitcoin by 1.8%. Bitcoin's inflation will gradually

Actually neither gold nor Bitcoin has a fixed supply. The gold supply increases by about 2.5% annually, and Bitcoin by 1.8%. Bitcoin's inflation will gradually decrease and it has an ultimate limit that will be reached in 2140, and gold will reach some limit if we don't start mining asteroids for it, but I don't think either limit is economically relevant today.

matheusmoreira 6y ago
> Actually neither gold nor Bitcoin has a fixed supply. It does. There's an upper limit to how many bitcoins can be mined. We haven't reached this limit yet but it will eventually happen.
- SpicyLemonZest 6y ago
  Which was acknowledged, but it's not clear why that upper limit would be relevant to economic decisions today. Nobody's investing today based on predictions of exactly what the world will look like in 2140; they're making predictions over at most a couple decades, and over that period the Bitcoin supply will see a significant continual increase.
  - imhoguy 6y ago
    By that time we either break SHA256 or burn the entire planet to fuel the virtual greed.
  - bitxbitxbitcoin 6y ago
    How significant is it really? There will be less than 15% change in the total supply and the majority of that actually will happen in the next few decades.
    - SpicyLemonZest 6y ago
      If you ask me personally, I'm not convinced the number of base units in existence is an important metric for any currency. (In the US dollar for example, this is called the "monetary base", and neither fans nor detractors of American monetary policy point to it very often.) It's just an illustration of the fact that the value of Bitcoin can't come deterministically from its restricted supply - if it did, that 15% supply increase would equate to a 13% loss for all holders.
    - tromp 6y ago
      I try to answer that in https://john-tromp.medium.com/a-case-for-using-soft-total-supply-1169a188d153 https://john-tromp.medium.com/a-case-for-using-soft-total-su...
- deleted 6y ago
  [deleted]
fasteddie31003 6y ago
Bitcoin's supply will be logarithmic where as gold will increase linearly. In the long run that makes a big difference. I'd take linear or logarithm supply over the exponential USD supply that we are currently seeing https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL
- SpicyLemonZest 6y ago
  As is noted under the graph, this big spike comes from a redefinition of the underlying metric, not an organic increase.
  - fasteddie31003 6y ago
    Just read that. This redefinition is so dumb. This metric is now worthless for statistic models.
    - SpicyLemonZest 6y ago
      Can't argue with you there.

matheusmoreira 6y ago

> Actually neither gold nor Bitcoin has a fixed supply. It does. There's an upper limit to how many bitcoins can be mined. We haven't reached this limit yet but it will eventually happen.

SpicyLemonZest 6y ago
Which was acknowledged, but it's not clear why that upper limit would be relevant to economic decisions today. Nobody's investing today based on predictions of exactly what the world will look like in 2140; they're making predictions over at most a couple decades, and over that period the Bitcoin supply will see a significant continual increase.
- imhoguy 6y ago
  By that time we either break SHA256 or burn the entire planet to fuel the virtual greed.
- bitxbitxbitcoin 6y ago
  How significant is it really? There will be less than 15% change in the total supply and the majority of that actually will happen in the next few decades.
  - SpicyLemonZest 6y ago
    If you ask me personally, I'm not convinced the number of base units in existence is an important metric for any currency. (In the US dollar for example, this is called the "monetary base", and neither fans nor detractors of American monetary policy point to it very often.) It's just an illustration of the fact that the value of Bitcoin can't come deterministically from its restricted supply - if it did, that 15% supply increase would equate to a 13% loss for all holders.
  - tromp 6y ago
    I try to answer that in https://john-tromp.medium.com/a-case-for-using-soft-total-supply-1169a188d153 https://john-tromp.medium.com/a-case-for-using-soft-total-su...
deleted 6y ago
[deleted]

fasteddie31003 6y ago

Bitcoin's supply will be logarithmic where as gold will increase linearly. In the long run that makes a big difference. I'd take linear or logarithm supply over the exponential USD supply that we are currently seeing https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL

SpicyLemonZest 6y ago
As is noted under the graph, this big spike comes from a redefinition of the underlying metric, not an organic increase.
- fasteddie31003 6y ago
  Just read that. This redefinition is so dumb. This metric is now worthless for statistic models.
  - SpicyLemonZest 6y ago
    Can't argue with you there.