I
explained in great detail, that reasonable rates of decentralized debasement of the money supply is not deleterious for the productive people. Decentralized debasement actually can dilute the lazy large capitalists who intend to capture everything by riding stored capital, and productively transfer that capital in a competitive proof-of-work to the more productive knowledge capital producers. This is done at a very gradual rate so that money still retains a store-of-value quality as well. Bitcoin's debasement rate has been very high in recent years and still going at 11% per annum, yet the price appreciated due to influx of adoption.
Would you mind explaining to a noob like me how Bitcoin is debased?
Thx
2017 End
BTC supply 15750000 - 2013 Start
BTC supply 10500000 = 5250000
5250000 ÷ 2013 Start
BTC supply 10500000 = 0.5, i.e. 50% increase in
BTC supply in 4 years.
5250000 ÷ 4 ÷ 2013 Start
BTC supply 10500000 = 0.125, i.e. 12.5% increase in
BTC supply in 2013.
5250000 ÷ 4 ÷ (5250000 ÷ 4 + 2013 Start
BTC supply 10500000) = 0.111, i.e. 11.1% increase in
BTC supply in 2014.
5250000 ÷ 4 ÷ (2 x 5250000 ÷ 4 + 2013 Start
BTC supply 10500000) = 0.100, i.e. 10.0% increase in
BTC supply in 2015.
5250000 ÷ 4 ÷ (3 x 5250000 ÷ 4 + 2013 Start
BTC supply 10500000) = 0.091, i.e. 9.1% increase in
BTC supply in 2016.
Notice in Bitcoin the new coin production schedule is designed such that rate of increase is declining and the total supply is designed to never exceed 21 million
BTC coins. However, IMO that is myopic because the mining is already centralized and if the government takes over, there is no limit to what they might do with the protocol. I argued that more upthread or in the past, where I said once the masses dominate the coin userbase, they really don't care as long as they get their debt and Walmart goodies.