RE: Bobby Lee Says, "Let's Make Bitcoin Great Again"
Hi @crypto.piotr,
I am trying to address the issue of inflation here, in monetary terms. The trouble with printing money non stop "depreciates" the actual value of the money. That means fiat currencies lose value over time.
As for Bitcoin, the protocol has set to mine to a limit of 21 million BTCs. Less and less Bitcoin is mined every time a new BTC block is created on the chain. This is not true for some altcoins, because the supply defined in the protocol is not limited.
So Bitcoin here is a special case, much more similar to the real gold. Because we know that the total amount of gold in this world is limited, it is valuable and rare. More people want to store their money as Bitcoin as the value of 1 BTC is always from a total of 21M BTCs.
But fiat which is printed more and more, have to go through a printing and "burning" phase to make sure that the overall supply of the paper money does not increase too quickly. For example, increasing at a rate of 3% (inflation) every year.
Hope that helps you to understand more about inflation :)
Thank you for taking an effort to share your knowledge with me @tysler
I truly appreciate it a lot.
ps.
I was lately wondering: what do you think could potentially happend if most altcoins would start shutting down (very likely scenario) and dying? That would cause panic sell of those altcoins which in theory means that investors will have to trade them to BTC. That could possibly increase demand for bitcoin. Do I make any sense? :)
Cheers
Piotr