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>If you have more people or if the money isn't in circulation, the buying power will stay the same, therefore not causing inflation. Exactly. Money is just an
by itsoktocry 4y ago
>If you have more people or if the money isn't in circulation, the buying power will stay the same, therefore not causing inflation.
Exactly. Money is just another good in the economy (albeit a bit special). Its supply and demand ebbs and flows like any other.
This is one of the things I find so funny about the known quantity trait of Bitcoin. Why would you want an underlying currency that can't increase its supply? It will inevitably increase in value and people will substitute for other methods of exchange.
- lupire 4y agoBecause if people use is less, it will decrease in value, making it attractive to spend, reaching equilibrium. It's not perfect, but either is "someone in charge prints a ton of money and gives it to their friends".