Author: Ryan Carboni 2013-12-09 22:23:35
Published on: 2013-12-09T22:23:35+00:00
The context discusses a proposed Bitcoin Improvement Proposal that suggests a change in the inflation formula of Bitcoin. The proposal allows for 4.9% semi-weekly variations in the price of Bitcoin, which would result in an appreciation of 11,800% per year. However, Andrew Poelstra responds to the proposal, stating that any change to the inflation formula would be a violation of the trust of those holding the currency, as they obtained it while believing that its inflation algorithm would not change. He further explains that many people bought Bitcoin with the hope that its value in relation to other currencies would increase and not because there is a fixed money supply. Additionally, the majority of people using Bitcoin as a currency in exchange for real goods are using exchanges.
Updated on: 2023-06-07T22:19:02.092232+00:00