Author: Eric Voskuil 2022-07-09 20:53:56
Published on: 2022-07-09T20:53:56+00:00
The term "supply" in Bitcoin is colloquially used to refer to the number of coins in circulation, but this can be conflated with the economic concept of supply and demand. While supply in economics refers to the desire to sell, demand refers to the desire to buy. Eric Voskuil argues that price inflation is not caused by market production and attributing a lack of inflation to loss is an assumed relation. He also notes that even if the amount of loss was known, there remains an assumption in the correlation of non-lost coins to price. Demand determines price, not the amount of something in existence. On the other hand, Peter Todd questions whether there is proof that coins are lost, as the observation that lost coins lead to a stable money supply is based on an assumption.
Updated on: 2023-06-15T22:37:18.032737+00:00