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The total number of Bitcoins is capped at 21 million. So how it can handle GDP growth? The amount of currency should reflect GDP size. Otherwise there will be
by dgregd 13y ago
The total number of Bitcoins is capped at 21 million. So how it can handle GDP growth?
The amount of currency should reflect GDP size. Otherwise there will be deflation.
Gold worked well as currency. Its yearly production increased total amount of mined gold by about 3%. Which was on GDP increase level.
- mrosseel 13y agoif GDP grows such that the smallest subdivision of one bitcoin (called 1 satoshi) becomes too expensive, extra decimals are added. So instead of making new coins, the existing coins will be subdivided in smaller pieces.
- dgregd 13y agoI known that it is possible to lower prices denominated in Bitcoins. However this is the deflation problem I am taking about.