this post was submitted on 21 Aug 2023
876 points (94.3% liked)
Memes
45674 readers
1016 users here now
Rules:
- Be civil and nice.
- Try not to excessively repost, as a rule of thumb, wait at least 2 months to do it if you have to.
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
How do we know that 0.5% is decent? Why not 10% or 0.01%?
The more the better for security, the upper practical limit is golds inflation rate, the lower practical limit is the percentage of coins that become lost or inaccessible. That puts the viable range to 1.5-0.2%, roughly. To be clear, I'm not worried about bitcoins current rate, but rather that it will drop further and further.
Would I be correct to assume gold sets the upper limit because any higher and people would just store value in gold instead?
Why does the security budget need to be higher than the rate of lost coins?
The goal is to create attractive market conditions. Positioning yourself between the historic store of value and the minimum to avoid deflation seems like a good target.