Reward drop effects - page 2. | Bitcointalksearch.org

ForceField

sr. member

Activity: 386

Merit: 250

Quote from: count_eternity on August 23, 2012, 01:42:44 PM

OK, so the infinite divisibility of BTC functions similarly to money printing?

Not exactly money printing as the total amount is not increasing. Instead, smaller amounts have higher value.

Also, they're not infinitely divisible, but only down to a minimum of eight decimal places (0.00000001).

count_eternity

newbie

Activity: 9

Merit: 0

OK, so the infinite divisibility of BTC functions similarly to money printing?

RodeoX

legendary

Activity: 3066

Merit: 1147

The revolution will be monetized!

This is an essential part of bitcoin. Like gold bitcoins have a fixed total amount. Assuming wider adoption, the diminishing supply of BTC drives up price. Unlike gold bitcoins can be divided into ever smaller amounts to accommodate this increase in price. That is also different from fiat currencies, which tend to print more money to fix budget problems and drive value down.

count_eternity

newbie

Activity: 9

Merit: 0

I want to here your thoughts on the reward drop effects. At a quick glance, it would seem to cause a bubble in BTC value, but I'm sure there is someone with a better understanding of economics who can give a better explanation.

Topic: Reward drop effects - page 2. (Read 1685 times)