Author: Tobin Harding 2022-07-10 02:10:40
Published on: 2022-07-10T02:10:40+00:00
In this email conversation, Peter Todd via bitcoin-dev responds to Eric Voskuil's statement that price inflation is not caused by market production. Todd clarifies that his article presents a mathematical proof that is unrelated to observations of inflation. His proof shows that if there is tail emission/fixed supply, the coin supply will converge towards a fixed amount because the rate of coin loss balances out the fixed rate of coin production. This proof is not affected by market dynamics and would happen in any system with similar underlying dynamics. Tobin expresses his doubts about Todd's model assumption that coin loss is proportional to the number of coins, arguing that as the value of coins goes up, it is reasonable to expect coin loss to go down as people become more careful. He questions whether it is possible to model coin loss as exponential decay considering such factors.
Updated on: 2023-06-15T22:34:01.554805+00:00