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144 sats \ 1 reply \ @denlillaapan OP 11h \ parent \ on: What's the Correct Shape of Fiat's Supply Curve? (In Price-Quantity Space) econ
This is the kind of thing that I find very confusing. When we talk about stock of gold, we might say there are ~290k tonnes of gold that are accessible to humans. Barring alchemy or some golden asteroid, this is the total stock of gold (I've heard there is a lot of other gold, such as gold dissolved in the oceans or in the Earth's core, but supposedly it's unlikely it will ever be worth reclaiming)
No, you're confusing what's physically available with what's economically available and/or in above-ground vaults
These kind of transformations seem like they are of the same kind to me: it's just somebody owning gold who wasn't previously willing to sell it, but now is.
No, this expands the supply of (monetary) gold, since the nonmonetary uses aren't impacting the money market. Larry White has some nice graphs to work this through in Better Money and Theory of Monetary Institutions. (You can probs find some presentations by him online as well.)
I think this is meaningfully different than gold's nonmonetary uses but I'll give it a think
So, no matter how much the price of bitcoin increases, we aren't changing the 21 million cap, but there certainly are sellers who weren't willing to trade their coins earlier, but are now. In my mind this seems very similar to the way you described gold's supply curve.
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0 sats \ 0 replies \ @Undisciplined 9h
Right, the stock of monetary gold is the current quantity of gold coins and bars.
The supply of monetary gold is people's willingness to transform gold in the ground or jewelry into monetary gold at each hypothetical gold price.
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