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1100 sats \ 3 replies \ @lipinip235 25 Aug 2022 \ on: [Promoted post and asking your help] "Does Bitcoin Actually Solve a Problem?" bitcoin
I liked it, upvoted. The economics point of view is refreshing, backing up BTC with hard data and background explanations.
I just keep wondering something about inflation, since its growth is primarily based on supply and demand, wouldn't its root cause be the ever-growing human population vs. the ever-shrinking planet resources, rather than the amount of bills printed? If it is, then the inflation concept could be transferred to BTC once basic goods start being priced in sats, no?
Thanks for the vote and your note here! The population growth factor is very interesting factor - if we get to a point of hyperbitcoinization, it may be that people hodling are gaining purchasing power over time rather than losing it all other things equal. I haven't looked into the depletion of natural resources much - do you have any good recommendations on this front?
As for overall inflation, I would argue that any monetary inflation is purely do to money creation. Whatever the economy is denominated in doesn't matter - the price will always be reflective of the total supply of that decided money. And I'll pitch one more recent article on this front - looking at money supply/inflation compared with overall energy consumption. Energy consumption is flat over 35 years, but scare resources like land - even adjusted for population growth - are up 400+%
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Can't say I have recommendations, just stuff I've picked up reading online. I'll keep an eye out for more of your articles!
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Thanks again for the vote - I appreciate it!
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