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> The idea that an asset is deflationary or inflationary implies that the supply of the asset determines its price. Isn't this one of the most basic properties
by fivea 5y ago
> The idea that an asset is deflationary or inflationary implies that the supply of the asset determines its price.
Isn't this one of the most basic properties of supply and demand, though?
I mean,what do you expect to happen if your supply is artificially capped and early adopters start to pump up demand for the stuff they own?
In fact, isn't that the whole point of these schemes? I mean,do you know anyone who decided to waste their own money subsidizing anything related to crypto? Each and every single evangelist and proponent of crypto is invested in getting in cheap and pumping it up to get out with the maximum possible markup.
- notahacker 5y ago> Isn't that one of the most basic properties of supply and demand though. The most basic property of supply and demand is that price is determined by the interaction of supply and demand, so a fixing the supply alone determines nothing at all about its value, which is why the incessant pumping is necessary. The cryptoproponent's argument that cryptocurrencies must increase in value because there are hard limits on their growth rate is a cargo cult version of the law of supply and demand made to serve the pump