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.
Bitcoin mining is global. If somehow the government took over the major miners in the United States and forced them to change the protocol, wouldn't that just create a forked coin which people could choose not to use and instead keep using the real Bitcoin which is still mined throughout the rest of world and by smaller miners in the United States? For your scenario to play out, a total government takeover of the Internet (far more severe than the Great Firewall) and well as blanket observation and control of all commerce would be required. Even if it were technically possible for this regime to carry out this kind of extreme totalitarianism, I do not think it has the political capital and economic resources to do it. Nor do I think they are stupid enough to try. Power will adapt to Bitcoin, not destroy it.