While reading the interesting tale of the guy who mines bitcoins and then destroys them:
https://bitcointalksearch.org/topic/destroying-bitcoin-by-coin-by-coin-26539,
I figured out what happens to such destroyed bitcoins and all lost bitcoins:
Well, of course the value of the lost bitcoins is distributed to the remaining bitcoins.
That is one more interesting property of bitcoin. One may lose a bitcoin, but its value is not lost to the community.
Does conventional cash have this property?
If I burn a number of dollar bills, would the value of the remaining dollars in circulation increase?
My guess is that if I burn a dollar bill, the value of that bill goes back to the U.S. government.
This seems more democratic than what happens to a destroyed bitcoin.
With bitcoins, the people who have more bitcoins benefit more from a lost bitcoin.
With dollars, it's the government who benefits, and the government belongs equally to each citizen (theoretically).
Don't advise me to try this out and see what happens. I'll try it as a thought experiment.
Ok, I secretly burned a trillion dollar bills. I lost a fortune. But who wins?
