The number of bitcoins is capped. A BTC transaction costs more than a fiat transaction. Thus, each bitcoin transaction neither increases the amount of usable currency, nor lowers transaction costs. Thus, electricity spent on mining bitcoin seems like a waste of real resources.
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Replying to @Noahpinion
Ignores potential benefit of the difficulty of inflating bitcoin.
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Replying to @Noahpinion
That’s because you have never lived in Zimbabwe or Weimar Germany or other places where the country fell apart in the wake of hyperinflation. But maybe you believe no risk of it here?
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Replying to @EconTalker
I think the risk of those things is not decreased by any given BTC transaction.
1 reply 0 retweets 18 likes -
Replying to @Noahpinion @EconTalker
Not by any BTC transaction. Rather by the fact that BTC is independent of any central bank. The spawning algorithm and mining process are inherently inflation-resistant.
8 replies 1 retweet 13 likes
Its not inherently inflation-resistant. It's supply is fixed, so there's no way to contract it's stock when demand falls. Which means its pretty susceptible to inflation, actually
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