Topic: Bitcoin Inflation (Read 568 times)
I think inflation is necessary for a currency to actually be used in everyday life (this is where gold has failed, why buy a pizza today if you can buy a car tomorrow?). Ultimately, this will decide whether Bitcoin and other cryptocurrencies will be regarded as an investment or a replacement for traditional currencies.
Looking at the market capitalization here http://coinmarketcap.com/ I had the following thought:
Given the technically limited supply of Bitcoin, it is often stated deflation is literally pre-programmed relative to the currency it is traded with, and certainly not an inflation. What concerns me, is that the creation of altcoins is not limited in any way and some actually have no technical limits regarding their supply. Furthermore, they are openly proposed to be used at the same time, eg. Bitcoin and Litecoin. Therefore, investment ideas based on the principle of intrinsic deflation might turn out futile in the long run.
Given the technically limited supply of Bitcoin, it is often stated deflation is literally pre-programmed relative to the currency it is traded with, and certainly not an inflation. What concerns me, is that the creation of altcoins is not limited in any way and some actually have no technical limits regarding their supply. Furthermore, they are openly proposed to be used at the same time, eg. Bitcoin and Litecoin. Therefore, investment ideas based on the principle of intrinsic deflation might turn out futile in the long run.
No, creating any number of AltCoins dont affect Bitcoin limited supply. Other altcoins live their own lives and if they build some infrastructure (merchant support), they may compete with Bitcoin. So far altcoins are useless
Yeah, in todays market, there really isn't acceptance of other currencies, so they should really play on the supply or demand on BTC. Once they become more prominant and accepted, then there might be some change.
Looking at the market capitalization here http://coinmarketcap.com/ I had the following thought:
Given the technically limited supply of Bitcoin, it is often stated deflation is literally pre-programmed relative to the currency it is traded with, and certainly not an inflation. What concerns me, is that the creation of altcoins is not limited in any way and some actually have no technical limits regarding their supply. Furthermore, they are openly proposed to be used at the same time, eg. Bitcoin and Litecoin. Therefore, investment ideas based on the principle of intrinsic deflation might turn out futile in the long run.
Given the technically limited supply of Bitcoin, it is often stated deflation is literally pre-programmed relative to the currency it is traded with, and certainly not an inflation. What concerns me, is that the creation of altcoins is not limited in any way and some actually have no technical limits regarding their supply. Furthermore, they are openly proposed to be used at the same time, eg. Bitcoin and Litecoin. Therefore, investment ideas based on the principle of intrinsic deflation might turn out futile in the long run.
No, creating any number of AltCoins dont affect Bitcoin limited supply. Other altcoins live their own lives and if they build some infrastructure (merchant support), they may compete with Bitcoin. So far altcoins are useless
Looking at the market capitalization here http://coinmarketcap.com/ I had the following thought:
Given the technically limited supply of Bitcoin, it is often stated deflation is literally pre-programmed relative to the currency it is traded with, and certainly not an inflation. What concerns me, is that the creation of altcoins is not limited in any way and some actually have no technical limits regarding their supply. Furthermore, they are openly proposed to be used at the same time, eg. Bitcoin and Litecoin. Therefore, investment ideas based on the principle of intrinsic deflation might turn out futile in the long run.
Given the technically limited supply of Bitcoin, it is often stated deflation is literally pre-programmed relative to the currency it is traded with, and certainly not an inflation. What concerns me, is that the creation of altcoins is not limited in any way and some actually have no technical limits regarding their supply. Furthermore, they are openly proposed to be used at the same time, eg. Bitcoin and Litecoin. Therefore, investment ideas based on the principle of intrinsic deflation might turn out futile in the long run.
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