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You mentioned transaction fees, the other is "inflation" or mined coins. As mentioned above, this is the same as gold and many other things. I guess it is just
by gpsx 5y ago
You mentioned transaction fees, the other is "inflation" or mined coins. As mentioned above, this is the same as gold and many other things. I guess it is just a matter of definition if you want to say that is a negative sum game. It is not unique to bitcoin though.
- caf 5y agoIt's important to realise that when I'm talking about transaction costs I'm not referring to the inbuilt transaction fees in the protocol - those are bitcoin-denominated and so are an internal transfer within the ecosystem (likewise for the block rewards). I'm taking about examples like when someone uses bitcoin to transfer money, by converting an external currency into bitcoin, sending the bitcoin somewhere then converting it back into an external currency. Whatever loss of value they see from that overall transaction has been transferred into the bitcoin system as a whole.