EggMcBluffin on Nostr: The fiat money supply is a function of addition and multiplication, and is increased ...
The fiat money supply is a function of addition and multiplication, and is increased not to accommodate a growing economy, but rather almost exclusively because it a debt based monetary instrument.
Because there are no physical, technical, or mechanical constraints to the supply of fiat currency, its supply will perpetually increase due to the borrowing required as a result of its devaluation over time and the associated interest. It’s a complete doom loop.
#bitcoin is simply a function of division, as it is fixed in supply (constrained by the network rules). As an economy grows and requires a more precise coincidence of scales, the #btc unit is divided to accommodate the exchange of goods and services for #bitcoin.
As long as a monetary good is reasonably and easily divisible, any fixed quantity of that money can serve any economy of any size and complexity.
Because there are no physical, technical, or mechanical constraints to the supply of fiat currency, its supply will perpetually increase due to the borrowing required as a result of its devaluation over time and the associated interest. It’s a complete doom loop.
#bitcoin is simply a function of division, as it is fixed in supply (constrained by the network rules). As an economy grows and requires a more precise coincidence of scales, the #btc unit is divided to accommodate the exchange of goods and services for #bitcoin.
As long as a monetary good is reasonably and easily divisible, any fixed quantity of that money can serve any economy of any size and complexity.