Author: Giuseppe B 2022-07-11 10:42:58
Published on: 2022-07-11T10:42:58+00:00
The discussion on whether or not to extend block rewards after the current deadline is only relevant if the community agrees that it is necessary to maintain network security. It is worth noting that a mild inflation can sometimes be compensated by coin loss, which is like a bonus. The assumption of a constant coin loss rate seems unreasonable as people improve their key storage habits over time, leading to a decrease in the rate of coin loss. Additionally, there may be common causes for coin losses that result in heavily correlated losses rather than independent ones. Anthony Towns suggests finding ways to minimize the rate of coin loss over time rather than leaving it constant. There could be various alternative predictable rates for coin loss, with one plausible scenario being that funds are lost due to carelessness with small amounts of Bitcoin. In this case, an equilibrium is reached if the price of Bitcoin is proportional to the number of users. Overall, the goal should be to decrease the real value held in BTC lost each year.
Updated on: 2023-06-15T22:37:28.039880+00:00