Create 1 more BTC?

They can create more bitcoin if they change the standard, but that's unlikely anytime soon. Not all cryptocurrencies have a forced count limitation, so they can be inflated just as easily as fiat currencies. Most of the proposed central bank currencies have no real limitations... for obvious reasons.

Technically, a cryptocurrency isn't a ponzi scheme. It's just creating "money" out of thin air and hoping people will use it, like it, and then perceive it to have value. In the end, it's just a number on a register. The Chuck-e-cheesy tokens might actually have more value as they're made out of metals... or at least they were in my day... might be plastics now.

If there's a serious security flaw found, a cryptocurrency could be cracked and it could be worthless in an hour or less. That's my biggest fear with them. I also don't like the lack of privacy on the block chain... or at least most block chains.
 
If a dollar could be divided into 100 Pennie’s how does it affect the value of a dollar if at all?
If a dollar could be divided into infinite number of pennies then what of its value? Similar to a BTC being divided to significant amount.
 
If a dollar could be divided into 100 Pennie’s how does it affect the value of a dollar if at all?
If a dollar could be divided into infinite number of pennies then what of its value? Similar to a BTC being divided to significant amount.
Because people could start trading in half pennies...quarter pennies, etc. Think about it. One single bitcoin, at the moment, is already prohibitively expensive. It's about $100,000. That's why when people do use bitcoin, they but and trade it in literal ten-thousandths, hundred thousandths, etc. As the value of one bitcoin grows, since you can't make more (you can, but we'll just give them the benefit of the doubt), you'll have to divide it more and more. It's a little like gold not being very good for small purchases. Generally, the smallest gold bit available is 1 gram. It has a value of I think $80. You'd have to cut it into 1/10th of a gram to pay for something small with it.
 
If a dollar could be divided into 100 Pennie’s how does it affect the value of a dollar if at all?
If a dollar could be divided into infinite number of pennies then what of its value? Similar to a BTC being divided to significant amount.
A dollar can be divided into 100 pennies and still have the same value. The same is true if you divide it into 200 (imaginary) half-pennies. You've got 200 half-pennies, but you still only have $1. The format of your dollar doesn't matter, it's still worth $1. Inflation hasn't changed either.

As the value of one bitcoin grows, since you can't make more (you can, but we'll just give them the benefit of the doubt), you'll have to divide it more and more. It's a little like gold not being very good for small purchases. Generally, the smallest gold bit available is 1 gram. It has a value of I think $80. You'd have to cut it into 1/10th of a gram to pay for something small with it.
Great point. I wonder how that would affect inflation.

Imagine this:
  • The USA uses BTC cryptocurrency instead of USD.
  • The BTC has a finite number of tokens (21M, let's assume it can't and won't be changed.)
  • As you suggested, in the long run, the value keeps increasing, so we keep using smaller and smaller fractions of BTC to buy stuff.

What happens then?

Let's say I buy a shirt for $15. This morning that shirt would be worth 0.000010 BTC. What if in 5 years, BTC are worth 100x more? Will my shirt be worth 0.00000010 BTC? Where does it end?

And my primary question: Does this cause inflation, considering it's a country's currency? How does inflation work with cryptocurrencies that have a finite volume?
 
Why not convert infinite fractions to a whole and disregard fractions from that point on. Then set the value of whole coins based on infinite fractions. 😁
 
And my primary question: Does this cause inflation, considering it's a country's currency? How does inflation work with cryptocurrencies that have a finite volume?
It's deflation as your savings keep gaining in value instead of losing it.

I've never liked how bitcoin was limited to so few coins given the size of the population. It's like it was designed to be a PITA.

Given that bitcoin is just a number on a ledger and technically not backed by anything solid... it does say something about the current financial situation that it keeps growing in value.

Or you could just use sound, honest money like we did before the 70s.
You know where we can still find this?!?!?! Do tell! :sarcasm:
 
It's deflation as your savings keep gaining in value instead of losing it.

I've never liked how bitcoin was limited to so few coins given the size of the population. It's like it was designed to be a PITA.

Given that bitcoin is just a number on a ledger and technically not backed by anything solid... it does say something about the current financial situation that it keeps growing in value.


You know where we can still find this?!?!?! Do tell! :sarcasm:
You dig it up from the earth and refine it. Literally. Of course, I buy the finished product. I'm not interested in amateur mining.
 

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