Okay, I genuinely want to figure this out. With a fixed tot…
Okay, I genuinely want to figure this out. With a fixed total supply of 21 million Bitcoin and no further issuance, while it’s being promoted as cash—are they truly aiming to build a deflationary economy? I just want to have a rational discussion about deflation and inflation.
CSW argues we shouldn’t hoard capital. Yet in a deflationary economy, cash appreciates continuously. Over time, the same amount of currency can buy more goods and services, which creates an innate incentive for people to hoard cash.
I understand that BSV’s extremely high TPS enables rapid transaction circulation. But if widespread hoarding persists, will exorbitant transaction fees end up undermining the overall economic health of the entire network?
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Can technology scale infinitely, and can it reverse humans’ innate instinct to save money for appreciation?
In my view, this is the proper way to utilize payment channels:
Suppose there is paid Wi-Fi in the public areas of a hotel. Connecting to the network charges a set amount of sats per second or per minute. However, frequent small payments would result in excessive transaction fees.
With layered payment channels, the Wi-Fi usage fees for a full six hours are settled off-chain in the background. The final on-chain settlement is then completed on the main chain following standardized, proper procedures.
This approach eliminates the need for 6×60×60 separate transactions (billed by the second over six hours), and only a single transaction fee is required in the end.
I'm not convinced by the argument that deflation leads to problematic levels of hoarding.
Most of the things we buy are necessary, not optional. We can't just wait until they are cheaper.
But those who rob us blind via inflation love to warn us about deflation.