In what ways is Bitcoin's mathematical monetary policy far more predictable than gold and fiat currencies?

3 answers

• Dec 25, 2021 · 3 years ago
  Sure! Bitcoin's mathematical monetary policy is more predictable than gold and fiat currencies because it is based on a fixed supply limit. Unlike gold, which can be mined indefinitely, Bitcoin has a maximum supply of 21 million coins. This means that the rate at which new Bitcoins are created is predetermined and will eventually reach zero. Similarly, fiat currencies are subject to inflationary pressures and can be printed by central banks at will, leading to unpredictable changes in supply. In contrast, Bitcoin's supply is governed by a mathematical algorithm that is transparent and cannot be manipulated by any central authority. This makes Bitcoin's monetary policy more predictable and resistant to inflationary pressures.
  734367
• Dec 25, 2021 · 3 years ago
  Bitcoin's mathematical monetary policy is far more predictable than that of gold and fiat currencies because it is decentralized and governed by a set of mathematical rules. The supply of Bitcoin is determined by a process called mining, where new coins are created at a decreasing rate over time. This algorithmic supply schedule is publicly available and can be verified by anyone. In contrast, the supply of gold and fiat currencies is influenced by various factors such as mining production, central bank policies, and economic conditions, making it difficult to predict future supply. Bitcoin's predictable supply schedule provides transparency and eliminates the risk of sudden changes in supply, making it a more reliable store of value.
  744248
• Dec 25, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, believes that Bitcoin's mathematical monetary policy is more predictable than that of gold and fiat currencies due to its decentralized nature. Unlike gold, which can be affected by factors such as mining production and geopolitical events, Bitcoin's supply is governed by a fixed algorithm that is resistant to manipulation. Similarly, fiat currencies are subject to inflationary pressures and can be influenced by central bank policies. In contrast, Bitcoin's supply is predetermined and cannot be changed without consensus from the network participants. This predictability makes Bitcoin a more reliable and transparent store of value, attracting investors and users worldwide.
  724181