馃敟
Sep 26 in General discussion
When silver or gold prices goes up...
Precious metal mining companies just produce more silver & gold (ie. inflate the supply) by increasing mining efforts.
The result?
The price goes back down or quickly platues because the asset inflates.
But Bitcoin is different.
Bitcoin is deflationary.
When BTC price goes up...
Miners can't mine anymore than 450 BTC per day because it's hard coded to only allow for 1 block (3.125 BTC) every 10 min to be produced.
So no matter how hard Bitcoin miners want to mine, only 3.125 BTC can be produced every 10 min.
And this block reward gets cut in half every 4 years...
In 2028, for example, only 1.5ish BTC will be produced per 10 min interval.
As you can see, unlike with gold and silver, no matter how hard miners mine, bitcoin will never suffer from inflation.
Bitcoin is deflationary.
And anyone who understands supply and demand understands that less supply + more demand = higher prices.
馃槉 馃挵
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When silver or gold prices goes up...
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