Which is healthier for Bitcoin finite issuance or infinite issuance?
Hello dear readers, as usual with this new installment I will share my perspective on the happenings of the cryptocurrency market, with the current Bitcoin rebound to the $24,000 area and prior to the FED announcements it is expected that in the next week more volatility will develop in the price action.
In the coming weeks the price action of cryptocurrencies will somehow be conditional on the interest rate hike that is sure to be announced by the Fed in the last days of July this year, which is likely to make prices retreat once again.
In this sense, analysts agree that the price rebound within the cryptocurrency market will begin to develop in the medium term, however, taking into account that digital assets are most likely to recover, there are proposals that may spoil this price recovery.
When I say that there are proposals that could spoil this price recovery, I am referring specifically to the fact that the Bitcoin Developers are proposing that there be an infinite issuance of coins just as there is with conventional currencies, a view that in my view will cause inflation to increase disproportionately and this would impress prices negatively.
It is worth noting that on the popular BitcoinTalk forum and the Bitcoin developers mailing list, several experts in the Bitcoin network protocol presented their ideas about the infinite issuance of BTC units, one of the speakers, Mr. Peter Todd, said that the purpose of the constant issuance is to be able to replenish users who have lost access to their Bitcoin.
In particular, I may be wrong, but I believe that the finite issuance is the best presentation card that the Bitcoin network protocol conceives, so, if the infinite issuance of BTC units is approved, it would spoil everything that has been built to date.
Now, beyond my position on this issue, I would like to know your opinion on the finite versus infinite issuance of Bitcoin units.
SOURCES CONSULTED
Bitcoinops Bitcoin Optech Newsletter #209. Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: Coxtoday
greetings @lupafilotaxia
I certainly share your appreciation the finite issuance of bitcoin is healthier for the ecosystem and will allow to have a better price in the market, but I am also sure that they will do exercises to analyze how to share with some emissions.
Thank you very much for sharing your publication
Hello @dgalan
I think the same thing the finite issuance of Bitcoin is healthier, or at least they keep the principle that gave birth to this cryptocurrency.
Best regards, be well.
I agree with you that the infinite issuance of coins will increase inflation and transform the BTc into just another altcoins, losing the credibility of the big investors that are still left or that are thinking of entering the business. It is a basic rule in economics and market, the higher the product the lower the cost.
Hello @joseph1956
Good point, the bigger the product the lower the cost.
Best regards, be well.