0 sats \ 2 replies \ @faithandcredit 6 Jul 2022 \ on: How does everyone think about Bitcoin and Inflation - is a 21 million *permanent* cap correct? bitcoin
Energy consumption is going up because we live in an era of cheap credit and low inflation. But this is changing and energy consumption will not rise as fast as some analysts predicts.
If BTC becomes as valuable as you say, more valuable than energy, then ppl will prefer it over spending energy which lowers the cost of energy until more ppl prefer to spend some btc in exchange for it. Don't know if that makes sense.
I should have perhaps added in energy production as well, since we can only consume as much as we produce. And I just added energy as a base for reference for comparisons over time (vs GDP or any other 'society output' metric). It just seems that hodling bitcoin gives outsized capture of value in society with little to no risk...
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If you aren't increasing your stack your aren't capturing anything, at best you are keeping what you earned and if productivity in the economy is going up while you are idling then you also benefit from that. But the guy who is working and increasing his stack will gain the "no risk benefit" of BTC while also making more BTC.
Ps. BTC is not no risk atm! This is a potential future where btc is extremely widespread and there is plenty of money for miners. To put it simply.
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