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Topic: Bitcoin Inflation or a way to increase number of Bitcoins - page 2. (Read 2944 times)

member
Activity: 70
Merit: 10
We all know the number of bitcoins are hard coded into the software at around 21 million.  Miners often wonder if mining is a long term viable activity because eventually all the bitcoins will be mined.  Only transaction fees are left.  Transaction fees may or may not even cover the power cost to keep the miners running.  And miners are important to bitcoin's network integrity.

As an incentive to keep the miners online, the community can increase the number of Bitcoins to be mined.  So how do we increase the number of Bitcoins?

I think the solution is to a fixed exchange rate for old Bitcoin from version 1 to version 2.  Where the exchange rate is voted on by the community. 

The analogy in the real world would be a stock split.  Microsoft had split its stock several times in the past.  We can copy the methodology.  For example, if we want to increase the number of coins from 21 million to 42 million, then we can do a 1 to 2 split, where as each version 1 of the coin and exchange for 2 version 2 of the coin.

If Bitcoins is truly useful and is widely adopted in the future, then there would be no problem for version 2 Bitcoins to retain its fiat exchange rate.  Usually following a stock split, the underlying stock price increases.

There will be philosophical and technical challenges. 
1. Should we increase the number of coins to start with? 
2.  How to modify the software?

"the exchange rate is voted on by the community"

That is what democracy plus a fiat currency is, a majority votes for the guy/girl that promises to give them everything their heart desires for free and ultimately the currency is driven to zero value as finite resources collide with infinite desires.  Guaranteed disaster.
hero member
Activity: 950
Merit: 1001
If transaction fees are ever too low, we can use assurance contract to pay for security.
https://en.bitcoin.it/wiki/Contracts#Example_3:_Assurance_contracts
legendary
Activity: 3598
Merit: 2386
Viva Ut Vivas
We all know the number of bitcoins are hard coded into the software at around 21 million.  Miners often wonder if mining is a long term viable activity because eventually all the bitcoins will be mined.  Only transaction fees are left.  Transaction fees may or may not even cover the power cost to keep the miners running.  And miners are important to bitcoin's network integrity.

Do you often worry about things that will happen in 130 years?
legendary
Activity: 1078
Merit: 1003
full member
Activity: 168
Merit: 100
why in the world would u want to increase amount of bitcoin? the whole good thing about bitcoin is there is a limited amount lol,

also its divisible infinitely so you dont really need to increase the amount, even if there is 1 bitcoin everyone can still use .00000001 of one ect...

and transaction fees should go up slowly this way mining will be more profitable from transaction fees then the actuall block rewards,

aslong as we dont touch the block limit or mess with anything, the way it is now should slowly rise transaction fees, because since a bloc takes atleast 10 minutes well i noticed blocks today being much longer maybe even 40-1hr each

there would be ppl that want there transaction to go in the first available block for speed,
and will pay a higher transaction fee,

so transaction fee is very vital for the system to survive in the longterm
legendary
Activity: 1190
Merit: 1001

 The number of BTC is being INFLATED right now.  The supply currently increases by roughly 7200 BTC per day (value at the time of writing: $734,400).

 The layman sees Bitcoin as 'money from nowhere', but really every time a miner solves a block he/she is reducing the total worth of all BTC in existence.  Thus is APPEARS as though there are no transaction fees, when in reality the fees come from anyone who holds bitcoin.

 Very soon it will be possible to take short positions on BTC, making it possible to easily profit from BTC depreciation.  Thus people could easily take positions on technological disruptions, etc.

This rules come from the beginning, and it's completely clear.

But if you can change it now, because people wants... that is going to happen again, and again... and we're back in the same problem fiat has.
sr. member
Activity: 280
Merit: 257
bluemeanie

 The number of BTC is being INFLATED right now.  The supply currently increases by roughly 7200 BTC per day (value at the time of writing: $734,400).

 The layman sees Bitcoin as 'money from nowhere', but really every time a miner solves a block he/she is reducing the total worth of all BTC in existence.  Thus is APPEARS as though there are no transaction fees, when in reality the fees come from anyone who holds bitcoin.

 Very soon it will be possible to take short positions on BTC, making it possible to easily profit from BTC depreciation.  Thus people could easily take positions on technological disruptions, etc.
legendary
Activity: 3066
Merit: 1047
Your country may be your worst enemy
I'm joining the majority of people who don't want the number of bitcoins to be increased over its built-in limit.
legendary
Activity: 1190
Merit: 1001
If you can increase number of bitcoins their final value is going to be 0....
member
Activity: 60
Merit: 10
We all know the number of bitcoins are hard coded into the software at around 21 million.  Miners often wonder if mining is a long term viable activity because eventually all the bitcoins will be mined.  Only transaction fees are left.  Transaction fees may or may not even cover the power cost to keep the miners running.  And miners are important to bitcoin's network integrity.

As an incentive to keep the miners online, the community can increase the number of Bitcoins to be mined.  So how do we increase the number of Bitcoins?

I think the solution is to a fixed exchange rate for old Bitcoin from version 1 to version 2.  Where the exchange rate is voted on by the community. 

The analogy in the real world would be a stock split.  Microsoft had split its stock several times in the past.  We can copy the methodology.  For example, if we want to increase the number of coins from 21 million to 42 million, then we can do a 1 to 2 split, where as each version 1 of the coin and exchange for 2 version 2 of the coin.

If Bitcoins is truly useful and is widely adopted in the future, then there would be no problem for version 2 Bitcoins to retain its fiat exchange rate.  Usually following a stock split, the underlying stock price increases.

There will be philosophical and technical challenges. 
1. Should we increase the number of coins to start with? 
2.  How to modify the software?

If Bitcoin is widely used for trade by the time the last coins are mined, transaction fees should be incentive enough to keep the network stable. If not, Bitcoin is probably dead anyway.
legendary
Activity: 1148
Merit: 1008
If you want to walk on water, get out of the boat
Quote
Should we increase the number of coins to start with? 
NO
member
Activity: 96
Merit: 10
This is one of the dumbest ideas I have ever heard.

+1
member
Activity: 104
Merit: 10
This is one of the dumbest ideas I have ever heard.
legendary
Activity: 905
Merit: 1000
The cure sounds worse than the disease.
full member
Activity: 196
Merit: 100
if somehow you can increase the limit of bitcoin. i would go to invest in gold and silver
full member
Activity: 130
Merit: 100
We all know the number of bitcoins are hard coded into the software at around 21 million.  Miners often wonder if mining is a long term viable activity because eventually all the bitcoins will be mined.  Only transaction fees are left.  Transaction fees may or may not even cover the power cost to keep the miners running.  And miners are important to bitcoin's network integrity.

As an incentive to keep the miners online, the community can increase the number of Bitcoins to be mined.  So how do we increase the number of Bitcoins?

I think the solution is to a fixed exchange rate for old Bitcoin from version 1 to version 2.  Where the exchange rate is voted on by the community. 

The analogy in the real world would be a stock split.  Microsoft had split its stock several times in the past.  We can copy the methodology.  For example, if we want to increase the number of coins from 21 million to 42 million, then we can do a 1 to 2 split, where as each version 1 of the coin and exchange for 2 version 2 of the coin.

If Bitcoins is truly useful and is widely adopted in the future, then there would be no problem for version 2 Bitcoins to retain its fiat exchange rate.  Usually following a stock split, the underlying stock price increases.

There will be philosophical and technical challenges. 
1. Should we increase the number of coins to start with? 
2.  How to modify the software?
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