Oddbean new post about login | logout I like to point out that even Bitcoin has inflation... Is the block reward theft? No. Why? Because everyone agrees on what the printed money is being used for and agrees that it is being distributed fairly. If I agreed with what my taxes were being used for and that they were being distributed fairly they would also not be theft. I believe governments on a Bitcoin standard will be much more responsible with tax money 👍
Because they will be accountable for the decisions they make and the capital they collect and allocate.
Your profile icon is absolutely hypnotic, btw. Bravo.
Thanks! Ironically, it was mostly supplied by US tax dollars 😂 I just added the #bitcoin symbol https://svs.gsfc.nasa.gov/13326
I don't agree. All Bitcoins have already been created. They are merely distributed according to a fixed supply. This is not the same as inflation, which would require an increase of coins beyond 21m.
The fact remains that miners are literally being subsidized... It's even called a block subsidy. And this subsidy does put downward pressure on the price meaning that the supply inflation is literally devaluing all holders Bitcoin.
I get your point, but it's debatable how strong it is and will be in the coming years as the subsidy continues to decrease into irrelevance. Also, 21m is the magic number, as per my previous comment. Do you measure how much bitcoin you have as a fraction of 19.8m or 21m? If 21m, then there is no dilution, no inflation. Back to miners. They do work, they get paid. I do work, I get paid. Nobody increases supply for work.
Yea I'm just pointing out what is literally happening, not what impact it has on human psychology. It absolutely will completely go away in 2140, and will be irrelevant in the next 5-10 years. But yea today miners are still primarily getting paid via subsidy not by tx fees. So yes they are doing work and we all agree it's fair and we all agree they they should be subsidized, but we are printing money to pay them.