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Mike | Abundance
@abundance
The “one important truth” (a la Peter Thiel) that few crypto people agree with me on (I assume it's due to their uncritical acceptance of bitcoin’s “21m” narrative) is that cryptocurrency needs to be inflationary. Basic monetary principles sat that if you want a thriving economy the currency has to grow along with GDP. If the currency is “fixed" people will not want to buy stuff bc the price of goods will have to drop in relation to the currency (supply & demand). But if producers don't expect to sell as much they'll cut down production. So a “fixed” currency leads to economic stagnation (or worse). If the amount of money in circulation increases proportionately to GDP growth you can have a thriving economy & a stable currency. Question is how serious are we about crypto competing with, or even replacing, fiat currency. If we're serious we need to adopt cryptoeconomics that promote a thriving economy. We can't just pretends that deflationary monetary policy will "fix the world." It won't.
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Vanessa Williams
@fridgebuzz.eth
I did find the “fixed supply” of BTC questionable and I liked how Vitalik explained the reason why ETH would have an infinite supply (released at a constant rate). I mean for one thing what’s the reward for validating transactions when all the BTC has been mined? I know there’s more to the issue than validation rewards but it still made me wonder.
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Mehdi Benembarek
@mehdi-benembarek
An eternal economic debate
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@bagirhektor
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