Quote from: kokojie on December 17, 2014, 06:17:25 PM

Quote from: interlagos on December 17, 2014, 04:28:04 PM

Quote from: kokojie on December 17, 2014, 01:39:06 PM

...

Why would you call emission rate a tax?

When the block reward was 50 coins the inflation was higher than 10% per year, it gets lower and lower with every new halving. Bitcoin was designed to distribute coins over the course of several decades on a permission-less basis. All coins (before they are mined) are guarded by an algorithm, as opposed to any form of private money (including fiat) guarded by a group of people.

It might be cheaper to maintain an electronic money system, where people are at the center of its security model, but you will get all the downsides of that as well.

It has nothing to do with inflation rate, the 10% expense is on the USD value of the market cap. If the PoW mining expense had anything to do with coin distribution, then what happens when coins are all distributed? Bitcoin network suddenly has no hash rates?

When distribution ends the network is still guarded by an algorithm, this is the only way to keep money away from politics.

Quote from: NotLambchop on December 17, 2014, 06:27:51 PM

^
I think he means "distributed to miners." More than 10% a year, but still...
When all the coins are distributed, inflation won't pay for mining any longer--tx fees will. How well that works out without being outrageously pricey per tx remains to be seen.

Correct.