Insightful framing of economic eras of #Bitcoin. Spoiler - it gets more painful as you go along since the mining subsidy hides costs for a long time.https://twitter.com/rusty_twit/status/936448512446775296 …
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Seems ironic that
#Bitcoin is painted as sound money because of its ultimate cap, but relies on inflationary money printing for a long time to entice users/miners to build on it.3 replies 2 retweets 5 likesShow this thread -
Replying to @angela_walch
Is there an alternative for emission of coins that doesn’t involve inflation? Confused.
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Replying to @angela_walch @cdelargy
Would Bitcoin be where it is today if all the coins were given to Satoshi and his friends instead of mined?
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Replying to @kyletorpey @cdelargy
No way. But it's the inflation that built it. Bitcoin up to this point is completely reliant on inflation of the money supply.
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You could argue it's like a bait and switch.
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I don’t look at it as a “bait & switch”, but more like a bootstrapping mechanism. Block rewards essentially subsidize security until the price gets high enough that tx fees can take over & become the sole mining incentive (self sustainable). It’s a clever way to get things going.
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