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> With Bitcoin, the community that controls the money supply is not at all democratic; it is the early adopters with large holdings that carry all the weight.
by throwaway248329 5y ago
> With Bitcoin, the community that controls the money supply is not at all democratic; it is the early adopters with large holdings that carry all the weight.
The mechanism according to which Bitcoin upgrades has nothing to do with decisions of whales or democracy. Read about how soft/hard forks and UASF specifically works.
- throwvirtever 5y agoI wasn't referring to upgrades, I was referring to control of the existing, finite supply of Bitcoin. In a Bitcoin-centered economy, a relatively small community of "whales" would have de-facto control of the supply, because the supply available for circulation would depend on what they decide to do with their holdings.
- throwaway248329 5y agoTrue. Although their control of money supply would be limited, and they would lose some part of that control every time they decide to "increase" the money supply.
- kayamon 5y agoBut Bitcoin has inflation though. The supply doesn't become limited until the inflation curve runs out in years to come. The early adopters will find the same financial pressures as with fiat currency.