Re:MasterCard to open up network to cryptocurrencies
by tfehring on Thursday February 11, 2021 @10:56AM
(#26102953)
Inflation isn’t strictly a measure of the monetary base. The dominant factor in “inflation” of (almost?) all cryptocurrencies is demand, not supply.
Now, you can make the argument that that’s not really inflation - that BTC won’t predictably ~double in value every year going forward, and therefore one shouldn’t be afraid to spend it - but the idea that the tiny rate of increase in supply should be a major factor in that decision is pretty silly. Also, it’s not obvious that it’s being mined faster than it’s being eliminated due to lost keys.
Now, you can make the argument that that’s not really inflation - that BTC won’t predictably ~double in value every year going forward, and therefore one shouldn’t be afraid to spend it - but the idea that the tiny rate of increase in supply should be a major factor in that decision is pretty silly. Also, it’s not obvious that it’s being mined faster than it’s being eliminated due to lost keys.