Bitcoins are restricted to 21 million however does it make a distinction since 1 btc could be divided into fractions infinitely? At present as much as 8 decimal locations however it will possibly damaged down additional if and when required AFAIK.
If all of us switched to btc and assuming the govt. doesn’t ban it, what’s stopping the govt. from rising our taxes or introducing some other measures to fund itself?
Btc isn’t resistant to inflation both. The govt. nonetheless controls our purchasing energy on the finish of the day.
Been searching for solutions for some time now, somebody please please please clarify this to me!! Thanks upfront! 🙂 🙂
***Admittedly, I might need used the flawed terminology right here. Let me do that once more.***
My level is that proudly owning 1 or 100BTC does not do something for me except I can get one thing of worth for it.
If I get an apple for 1BTC right now, that doesn’t assure that I’ll proceed to get apples on the identical price endlessly. If my shopping for energy decreases in future, the identical apple might value 10BTC. Different components nonetheless management that price. It does not matter in that case if there are the identical variety of BTCs on the planet at that time, that is all I’m saying.
So technically, BTC isn’t inflating in capability however the worth can nonetheless be deflated in the actual world. Therefore, the tip outcome is identical.
***The govt. can very effectively scale back the BTC provide/pool by rising the taxes if they’re decided sufficient. Nothing within the 21 million cap BTC system prevents that from taking place.***
If the govt. elevated the taxes to 90% and stops inflation, our purchasing energy will probably be dropped by 10 occasions whereas assuming the actual world objects’ demand and provide ratios stay unchanged.